Their effectiveness generally depends on the situation of an individual company, but some are more broadly applicable. At Funk Ventures, three strategies have made a significant impact on our business: attention to the management team, flexibility, and purpose. The management team is key to any transaction we complete. Demonstrated success in previous undertakings, the desire to create shareholder value, and entrepreneunal spirit are essential attributes to success. Equally important is the synergy between the venture capitalist and the core management team. A venture investment is the beginning of a significant financial partnership that can last for as long as six years or even longer. If there is the slightest doubt that the relationship will be fruitful, the investment should proceed cautiously, if at all. However, an experienced venture capitalist can often quickly determine the potential in a relationship: When meeting an entrepreneur for the first time, I typically know within five to ten minutes whether I can work with him or her. Evaluating entrepreneurs, however, is only part of success in venture capitalism. Strategies also apply internally to the venture capital firm itself. Funk Ventures has pioneered a unique corporate structure that runs managed syndicates—miniature funds that focus on one portfolio company each—and venture funds simultaneously. By creating the opportunity for specialization, we can craft the limited partnership agreement to fit specific requirements and thus invest in opportunities we might otherwise have had to pass up. For example, regular venture funds might not be able to invest in a limited liability company or an S corporation because most institutional limited partners cannot realize any unrelated business taxable income from the fund's investments, whereas we could create a managed syndicate that would bypass these restrictions by only selecting limited partners for the transaction that don't have this restnction. This strategy has previously enabled us to pursue several otherwise unattainable opportunities. Finally, purpose is often overlooked in the venture capital industry, often to the detnment of those in the field. The whole venture capital business has historically focused on return on invested capital without much thought to 24