venture fund

“A lot of the money's in the hands of very, very large institutions that can no longer put money into a 20 or 30 or forty million dollar venture fund. They just don't have, they just can't divide it up in that small a parcel.”

“There used to be close to 3000 major venture funds, and today that's in the hundreds. It's certainly below a thousand.”

“Because most venture funds are small. You've got three or four people, so there, you don't have a, Maybe a sense for the coordination costs or the internal machinations that have to happen in order to make change happen.”

“The level of fund formation is absolutely incredible. I don't see it slowing down immediately.”

“It's a fair question, and I wish I had a better answer, but once you get into the mechanics of how a venture fund works in terms of the way limited partners give you money, the way that you deal with taxes, etc., it is very difficult to innovate at all on the …”

“Where blockchain capital raised a portion of their venture fund through a token sale. And they were one of the first groups that figured out the legal process of setting this up and tokenizing their investment vehicle.”

“Most venture funds are set up to be highly internally competitive, which I think is crazy in a market that's as externally competitive as venture. So things like deal by deal carry, things like giving credit based off sourcing deals or serving on a board, thes…”

“Over the past prior decade, you know, 99 to 2009, the performance of venture funds was, to say the least, subpar. And the vast majority of the funds, I'd say 80% plus, We're returning capital at a pace that was incredibly slow, and we're having returns that we…”

“During that same period of time, the average venture fund had tripled in size, and the average initial investment had tripled in size.”

“If you have a three year fund or even a four year fund, You are more statistically likely to have that six to 12 month period fall into the vintage so that your median entry price and your cost basis for buying the shares and the startups that you're buying ca…”

“If you're going to join a venture fund, joining one that is new, where they have lots to do with people that you like, and you're aligned with their values, is super important.”

“We found is a lot of dynamics going on, one of them being companies staying private longer, another that these funds are getting raised faster and bigger funds are being raised, so these Portfolios are getting pretty large.”

“I suspect it's going to be harder to raise funds for the next five years than it was for the last five.”

“It's incredibly, incredibly rare, even during the 2008 financial crisis that investors refuse to allocate to their venture funds, unless they have actually gone bankrupt themselves, right?”

“I do think that there are going to be a handful of venture funds that are going to find it increasingly hard to raise their next venture fund sometime next year.”

“I think our funds are still going to perform in the same IRR neighborhood as venture funds, but the distribution, so we're a three X IRR could be 30% depending on how long it takes you to get the three X. So the IRR for the fund is going to be the same, but th…”

“Like there are economic models that are going to crumble under the pressure of the market that we're going into now.”

“Probably 80% plus of venture funds are not great.”

“I'm an LP in funds they're not marking their books down very much and very reactively, Tom.”

“Unfortunately, I think that is gonna be the comeuppance that a bunch of funds suffer. LPs are gonna say no.”

“I think around liquidity is probably the biggest whereby, especially I think in the next years it'll be really prominent, which is whereby you have a venture funds with not a lot of DPI. And they know that they need DPI more than ever to raise their next funds…”

“Individuals are actually down 60% from like when we compare it to about a year ago.”

“When you compare it to venture funds the, and venture funds are the traditional structure and we have a pretty large venture fund business. Individuals are actually down 60% from like when we compare it to about a year ago.”

“And so, so that means you need a three billion of exits, right? Gross. So that means you need thirty billion of market cap to make that fund work. If you have 10% real ownership, thirty billion of market cap.”

“A lot of LPs also pre-spent future budgets, if that makes any sense. If you were raising a fund every 18 months, and I thought you were raising every three years, I had two choices. Either I pull from future year budgets, or I reduce my check so that I stay co…”

“What was also sort of heartbreaking was the fund one to fund four on average, again, these are averages, some years are better, some years are worse, is 17%.”

“Over the years, and I'd say over the fifteen-year time horizon, the last 15 years of my life, I have occasionally thought about, should I start a fund? There's definitely a lot of drag coefficient associated with that that I was not particularly excited with, …”

“If a firm gets too big and we're no longer confident that we can make exceptional returns over time, we're going to have to scale out.”

“This is why I tell almost every individual do not invest in venture funds. It's dumb for individuals.”

“Some of the venture funds that they had invested in 10 years ago, 20 years ago, they felt like had become asset managers. And the idea of being able to invest in a pure play venture fund that had experience, but also a lot of hustle was something that we think…”

“People think these companies take like five, seven, nine, 10 years. Not true. They take like 15 to 20. That means your venture fund takes 15 to 20 years to distribute the money.”

“Your fund size is your strategy, and I guess I'm kind of famous for saying that for a long time. I don't know if I've ever really expressed why that is, so here's why. The power law is real, and so people don't realize that Pareto is not just eighty-twenty, it…”

“It's actually shocking that like, that the number of venture funds over the last like five or seven years has actually increased given that the exits are getting longer, not shorter.”

“Those are the LP of choice for the small early innovative funds. It's not a great trend because, you know, if you're raising a billion, you've long since stopped talking to Harvard in a meaningful way. You're actually talking to pick your sovereign wealth fund…”

“What it means is that the bigger your fund, the more imperative it is you have to be in those six deals, which explains why capital is so easy to raise for those companies. It all makes sense. It was great analysis. I'm not sure it points to everybody can do g…”

“We ask for trending revenue, trending gross profit, and trending free cash flow for the top 10 nabs of every, every fund of we underwrite.”

“And so for us, when we do a venture fund, our target is a forex net. That's our goal.”

“We have a three hundred million dollar seed fund eight hundred million venture fund, and one and a half billion gross fund.”

“I think some things are categories of one, and they're very hard to access. And that's the kind of deal where you just go, good on them. I'm not sure you build a repeatable venture fund around that.”

“If you were to look at our returns or the top performing venture funds, let's just call it that relative to, you know, top performing PE funds, the top performing venture funds outperform.”

“When LPs go to the biggest venture funds in the world, and private equity funds, and say, we're not investing in your next fund until you get liquidity in these names.”

“I think that people blaming like, you know, YC or whatever for some of their companies being frauds is probably not like directionally correct because like internally it's not like any venture fund really wants to like invest in a fraud and people that are lik…”

“And by the way, there have been times in the market, including recently, where being consensus driven has been extremely valuable and extremely lucrative as a fund.”