Clarkson: Emerging VC managers dominate both top and bottom performance tiers
Beezer Clarkson · 20VC: What LP's Want In VCs with Beezer Clarkson, Managing Director @ Sapphire Ventures · Jun 13, 2016 · at 16:13
Beezer Clarkson, Managing Director at Sapphire Ventures, references Cambridge Associates performance research on fund cycles to explain portfolio construction strategy for LPs.
0:00 / 0:20exact quote · 20.5s
720p mp4 · rendered on demand · StarZero watermark
“You will see that what is considered emerging managers, and these are venture funds that are on their first through fourth fund cycles. Are always represented in the best and the worst performing managers, and then the established funds, the ones who are vintage five, six, seven, and on and on, play within all of those, and the takeaway that we have from that is you have to have both.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Beezer Clarkson
Clarkson: LPs are shifting to accept partial secondary sales of winners
“And I've heard LPs that used to say, hold on to all your winners all the time are now saying, well, I meant that. But in context, there are times when it could be useful.”
Clarkson: Absolute TVPI-to-DPI gap is likely largest since dot-com crash
“The only other time that would be equivalent would be about 99 and 2000, and I don't know if there is the volume of funds in the market then, so, and absolute numbers, he's probably right.”
Clarkson: LPs internally discount GP fund valuations by 20% to 25%
“Well, I know a lot of LPs that will ask their managers, and then go back home and take another 20 to 25% off the top, because there's things that nobody knows.”
Clarkson: Auditors urged venture GPs to coordinate valuations in late 2022
“Well, and then I heard stories, and this is a story, so put it under the rumor and hearsay bucket, but that last year, the end of twenty-twenty-two, when the auditors were getting involved, they were telling GPs to talk to each other to try to figure out how t…”
Clarkson: Multi-billion-dollar VC funds disconnect GP fees from actual returns
“If you have a fund that's, I don't know, many billions, you're going to have a number of GPs that are making significant dollars, assuming it's spent Not spent on platform and other things. But if you can make that kind of money without even returning the fund…”