Nikhil Basu Trivedi, Co-Founder and General Partner at Footwork, responds to host Harry Stebbings about how limited partners evaluate venture fund managers.
“I don't think that they spend enough cycles on it. But I actually think some of the great ones do.”
quote is from the automated transcript, cleaned for reading:
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More from Nikhil Basu Trivedi
Opinion
Basu Trivedi: Massive AI foundation model seed rounds make no sense
“We don't think that the foundational model investments that, for example, they're raising hundreds of millions of dollars in a seed make any sense. They don't make sense for sure for our firm, but we don't think they actually make much sense for the big funds …”
Nikhil Basu TrivediSep 6, 2023▶ 14:38Nikhil Basu Trivedi: Why 99% of AI Investments Will Go Bust | E1057 · 20VC with Harry Stebbings
Insight
Basu Trivedi: Small VC funds outperform larger funds
“And my firm belief in my bones is that small funds outperform bigger funds.”
Nikhil Basu TrivediSep 6, 2023▶ 7:37Nikhil Basu Trivedi: Why 99% of AI Investments Will Go Bust | E1057 · 20VC with Harry Stebbings
AssertionSupported
Basu Trivedi: 5x net returns on $1B+ funds are historically rare
“It is incredibly difficult to have a five X net return on A billion dollar plus fund. I think there's incredibly few of those funds in history, in the history of venture.”
Nikhil Basu TrivediSep 6, 2023▶ 7:43Nikhil Basu Trivedi: Why 99% of AI Investments Will Go Bust | E1057 · 20VC with Harry Stebbings
PredictionNot checkable as stated
Basu Trivedi: LLMs will directly serve use cases, bypassing application layers
“In the large language model world, that the LLMs themselves will serve as a use case versus an application layer on top of those LLMs.”
Nikhil Basu TrivediSep 6, 2023▶ 58:39Nikhil Basu Trivedi: Why 99% of AI Investments Will Go Bust | E1057 · 20VC with Harry Stebbings
AssertionNot checkable as stated
Basu Trivedi: Several AI startups are seeing ARR declines due to churn
“I've heard there are several companies now that have grown rapidly in ARR and have now started declining in ARR as retention actually starts to affect these businesses because there's churn from folks who just try out products built on top of these LLMs becaus…”
Nikhil Basu TrivediSep 6, 2023▶ 58:55Nikhil Basu Trivedi: Why 99% of AI Investments Will Go Bust | E1057 · 20VC with Harry Stebbings
AssertionSupported
Basu Trivedi: Elon Musk predicted fully self-driving Teslas by late 2017
“Elon Musk said in In December, 2015 that Tesla is two years away from a self-driving car. So, you know, now we're in 2016 and he said that the Tesla will get there in late 2017.”
Nikhil Basu TrivediJun 1, 2016▶ 7:0620VC: The Future For Autonomous Vehicles & How Software Is Eating Cars with Nikhil Basu Trivedi, Investor @ Shasta Ventures
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