Lemkin: Startups Flooded With Insider VC Capital Is a Net Negative

“No, it's a complete negative. It's a, because they do less work, and they have a different bar, right? Because if you're managing ten billion, and you've got a five million dollar stake, or ten million dollars, and that company is just, it's just in the top destile of your portfolio. It's not whiz, but it's in your top destile. What are you going to do with the other nine billion you haven't deployed? You're going to put it into that company, and you're going to, and as you see that other people want to do it, you're going to get, your elbows are going to get sharper, and then you realize you got to do it with secondary, and then you realize, you know what, the deal's only worth 200, but if I offer 300, Like, I wouldn't do it for a new investment at 300, Harry, but I already invested at 20. So what's the difference on a blended basis? Like, it's like, I'm gonna make money, aren't I? Because this is a billion dollar company. This is gonna be a three billion dollar company, and so it inflates valuations, and it puts, companies are getting overfunded at inflated valuations by insiders today. I see it left and right.”

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