Tisch: Small stakes in outlier companies outperform strict ownership targets
David Tisch · 20VC: Doug Leone, Bill Ackman, Bill Gurley and Orlando Bravo on "Does Price Matter"; When to Pay Up vs When to Stay Disciplined, The Biggest Lessons on Price Discipline from 8 of the World's Best Investors · Feb 9, 2024 · at 22:53
Dave Tisch, Managing Partner at BoxGroup, argues that picking generational tech winners matters significantly more for venture capital returns than enforcing high ownership percentage thresholds.
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“Every VC's math works if you fund great companies. And so it's not about This, like, ownership threshold. If anybody owned one percent of Facebook, one percent of Uber.1% of Coinbase, your math works. Your math works really well, and it scales.”
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More from David Tisch
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“The company's either going to work or not work. And you are not the reason for either of those two things. If anything, you're the reason it's not going to work.”
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“The valuation to me is the investor's problem. And I just don't like, I don't believe that my sympathy sits for all the VCs that overpaid on things that they did. Like, everybody could, again, back to this, like, you could have said no. If you thought somethin…”