VC firms often come to True for advice on team construction for roles outside of the investment team. Investment teams are of course the core of most investment firms. The average firm adds .25 investment professionals for every $100m in additional AUM they manage. While perhaps not a well-known rule of thumb, it’s intuitive to most that as a firm manages more money, they will need more investors to deploy it—indeed the relationship is quite linear.
The primary question we sought to answer is: while investment teams scale with AUM, what is the progression of other roles?