Indie.vc is as started as a fund in O’Reilly Alpha Tech Ventures, a traditional VC fund.

VC funds typically run on their 2% management fee. Have $10m in assets under management, and get $200k a year to run the fund on (including paying GPs and employees). To increase this operating budget, you raise more money from LPs.

When indie.vc had trouble raising more money, it returned to traditional VC. When Calm Company Fund had trouble raising more money, it started conferences and a low-code agency - ostensibly to get more operating budget.

Now that the markets care about profitable businesses, indie.vc has reopened. But, Calm Company Fund has had to deal with fallout from their non-investing activities - and I’m sure they have to disclose the lawsuit to all potential investors which probably scares them away.

So, there’s a lesson here about how VC funds should invest in businesses, not try to create additional revenue lines.

I have utmost respect for Tyler and what he’s been trying to build. He’s excellent at brand building.

(Disclosure: I have a small stake in Calm Company Fund).