venture firm

“The best way to get any kind of round done is do the social engineering that you need to do to make sure other people in the market who are pretty well-regarded are talking you up, because that's the best way to get venture firms super excited.”

“And regardless of who takes that board seat or who ends up being interfaced with the company, we all need to get credit for that. And that's something traditionally very difficult for venture firms to do because all credit just falls to the one person.”

“Venture firms tend to be partnership-oriented. They don't operate around clear OKRs or KPIs. So you're not kind of run in the same efficient manner that traditional startup might be run in.”

“I found that if you collaborate and work and build deep and meaningful relationships with other venture firms and partners, actually, they're very willing to work with you. The ones who are competitive are the ones you probably never reached out to and tried t…”

“So a typical venture firm will actually only use 30 to 40% of its fund for initial checks, and they will reserve 60 to 70% for second checks and third checks and doubling down on their winners.”

“And we found that that is actually suboptimal for them because those firms have a low acceptance rate. And so if you spend all your time meeting with the top five firms and they all pass, then you're sort of stuck.”

“If you have a hundred million dollar fund, you still need to make three, four or five X on that to be a top tier firm.”

“A lot of the venture firms that used to be early stage focused venture firms have gone from, you know, having 304 hundred million dollar funds to billion dollar funds. And these billion dollar funds are not likely investing three to four million dollars at a t…”

“I think there's three things that where a venture firm can fail. Number one, you got to have great performance. That's an obvious one. Number two is you got to make sure that the young people coming up get the opportunities to grow economically and sending the…”

“Where I become more skeptical is groups that add later stage focused funds or other vehicles like that that aren't actually playing off of the inherent advantage that they have being in companies already. If they're just sourcing late stage companies they thin…”

“I talked to a number of venture firms, and the message that I got from a lot of venture firms was that given my background, I was not a perfect fit for venture. And when I double clicked on what they meant by that, it was more that there were not a lot of Lati…”

“I think the biggest enemy for venture firms is actually groupthink, and that kind of almost goes back to the solo GP versus a partnership type of a model. There's a lot of benefits to having partners and people Questioning and serving as a, as checks and balan…”

“There have now been over 360 venture firms that invested in space. They've invested in 200 nearly identical small site launch companies, for example.”

“There's constraints on venture firms, you know, doing too much secondary investing because then they have to register as an investment advisor. And there's a bunch of regulatory overhead that comes from that, that people are trying to avoid.”

“Well, I do think that the secondary markets Are really at an inflection point, and there's more and more capital flowing into the secondary markets. You know, we've seen it, of course, first for entrepreneurs. There's been a pretty robust secondary market avai…”

“I got rejected by many venture firms, which not many people know, but we are going to have an open conversation today.”

“As VCs, we invest in these firms that have durable competitive modes when venture firms have, it's largely brand, right? It's largely that, that Competitive advantage that comes from a brand.”

“If you have an investor, private equity or venture firm, that claims that they make a big difference in their companies, that they're there with those companies operationally, that they change them in a positive way. And you have 40 or 50, there is no way you …”

“Most venture firms have plenty of fees to cover the team and more, especially at that fund size scale.”

“I think AUM is the stupidest thing to talk about as a venture firm, because back to what we were talking about earlier, small funds outperform larger funds, and so you really shouldn't be talking about how much capital you've raised. I'm okay with people talki…”

“The top quartile, the best 25% of venture firms from the twenty-fifteen vintage have not returned their investors all their money. We're nine years in. The top quartile has not given their investors their money back.”

“It's especially hard in a venture firm in light of the power law, right? Again, very few companies are going to Create returns, which means there's likely to be concentration among different investors. Which suggests that you can have a skew of ego or insecuri…”

“I don't know if they're fucked up cultures, but I don't think they're incentivized to have the best returns. If you're an associate at a firm, and you're maybe there for five or six years, your job is to get a deal done that's gonna get marked up quickly so yo…”

“Why do venture firms hang together and Paper over the story because, you know, the asset is the firm and the name, and even if you hate each other, you want to manage the process well so you can keep the thing going because the firm has a brand and a reference…”