Oetting: 8VC eliminated deal-by-deal carry and individual deal rewards
Drew Oetting · 20VC: Why VCs Have Forgotten Their Job To Invest In Entrepreneurs not Technologists, How To Know When Growth Creates Value and When It Destroys It & How To Bootstrap Learning Most People Acquire Over Decades with 8VC Founding Partner, Drew Oetting · Sep 27, 2017 · at 8:48
Drew Oetting is a founding partner at 8VC. He explains how 8VC structures team incentives and profits compared to traditional venture funds.
0:00 / 0:16exact quote · 16.7s
720p mp4 · rendered on demand · StarZero watermark
“So ABC, we've done away with all that. We've incentivized collaboration. So there's no concept of this is my deal or your deal. I might have responsibility for certain aspects of it because of course there needs to be Delegation. But there's no concept of rewarding one person or the other based off of how one company does.”
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 Drew Oetting
Oetting: Deal-By-Deal Carry Is Poisonous To Internal VC Fund Culture
“Most venture funds are set up to be highly internally competitive, which I think is crazy in a market that's as externally competitive as venture. So things like deal by deal carry, things like giving credit based off sourcing deals or serving on a board, thes…”
Oetting: Functional AI Requires Vertical Enterprise Data Structures First
“In order for functional AI to exist in applications, especially in the business world, we need there to be data in software systems, which means we need enterprise software with highly complex and vertically focused data structures before AI can have very much…”
Oetting: Systemic US Racism Lies in the Court System, Ignored by Media
“On the left, there's very little talk in the mainstream media about the fact that the real prejudice and racism, in my opinion, that exists in the United States exist in the court system, not necessarily as much in other parts of the world.”
Oetting: Venture Capital and Private Equity Are Identical Businesses
“Venture capital is so distinct, at least culturally and, you know, in the media from private equity, because fundamentally they are very similar and really they're identical businesses done at different scale and at different times in a company's life cycle.”
Oetting: Private Equity Is More Operationally Focused Than Venture Capital
“Private equity actually has been incredibly entrepreneurial for a long period of time and really actually much more operationally focused than venture capital.”
Oetting: Board Members Violate Fiduciary Duties By Prioritizing Founders
“As an investor, you are legally, if you're on a board, you are legally responsible for being company friendly. You are violating your obligations if you are founder friendly or if you are investor friendly. You're supposed to be company friendly to all stakeho…”