What is a Fund of Funds?

A fund-of-funds is a pool of capital that is aggregated to invest into many other venture funds. A fund-of-funds allows LPs to gain greater exposure to venture capital investments without having to individually meet the minimum commitment for every fund they want to participate in.

Note: fund-of-funds incur an additional layer of fees (carried interest and management fees) that could be avoided if you were to invest into a typical venture fund directly.