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Prediction Not publicly verifiable AI assessment confidence: 95% certainty 3/5 debate potential 4/5

Suster predicts party rounds will perform worst over the next three years

Mark Suster · 20VC: Upfront's Mark Suster on COVID Redefining What A Great Company Looks Like and What Valuations Look Like, Why Pay-To-Play Is Back On The Table & Why We Will See The Death of Party Rounds · Apr 20, 2020 · at 37:14

Mark Suster, Managing Partner at Upfront Ventures, explains why fragmented investor bases with small equity stakes fail to support portfolio companies in downturns.

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“And party rounds did incredibly well. For the last five years, but I suspect party rounds are going to do the worst for the next three years, because getting conviction across three or four small investors that each own seven, eight, nine, 10% of your company is so much harder, both because nobody really has as much vested interest in your success.”

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 →

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