VC10X - What VCs Should Look for in a Fund Administrator - Shalin Madan, Co-founder, Formidium
Shalin Madan, co-founder of fund administration platform Formidium, delivers a contrarian take on vendor selection for VCs, arguing that following the herd mentality of choosing popular service providers is fundamentally flawed. He warns of an impending shakeout in the fund administration space and emphasizes that VCs need to conduct proper due diligence on their operational partners' financial viability, not just their client roster.
Key takeaways
- •Stop choosing fund administrators based on who your peers use—this herd mentality ignores critical business fundamentals and sustainability metrics.
- •Demand transparency about your fund administrator's cash flow and funding status, as many companies in this space will likely fail in the coming years.
- •Outsource non-core operations early to prevent administrative tasks from distracting small teams from their primary investment activities.
- •Evaluate potential acquisitions or partnerships now while market consolidation creates opportunities for well-positioned companies.
- •Prioritize safety and long-term viability over trendy features when selecting operational partners during uncertain market conditions.
Listen to full episode
Best moment
A lot of companies are gonna go out of business over the next few years
So I think that's that's key. I think a lot of companies are gonna go out of business over the next few years. A lot of companies are gonna go out of business over the next few years. You can mark that down. I also think that a lot of companies can do well in the next few years. And in fact, the reason why some companies are gonna be going out of business is because the other companies are doing well. So it's really a zero we're really in a zero sum environment. The companies that are run better, have better technology, have better understanding of processes, have better management will win.
6 clips
Ordered by timestamp. Jump to the moment you care about.
Related episodes
Investor Stories 462: Study the Masters, Develop Your Own Eye, and Stop Outsourcing Conviction (Wang, Mohapatra, Banks)
The Full Ratchet · Feb 26, 2026
20VC: Anthropic Wipes Billions Off Markets | Citrini Research: The Ultimate Breakdown: Agents, "Ghost GDP", Consumer Spend etc. | Figma Earnings Beat & Four Public Stocks to Buy | Jack Altman Joins Benchmark
The Twenty Minute VC (20VC) · Jack Altman Joins Benchmark · Feb 26, 2026
Making the most of the founder/investor dynamic (w/ Liz Zalman, author of 'Founder vs Investor')
The Startup Podcast · Feb 23, 2026
VC10X - The Consumer AI Opportunity Nobody Is Chasing ft. Ankur Sethi, Founder, Winner Capital
VC10X · Ankur Sethi · Feb 23, 2026
From the blog
Want clips like this for your podcast?
We find your top 5-8 clips, write the hooks, and deliver ready-to-post content. First 2 episodes are free.
Get 2 Episodes Clipped Free