Prediction certainty 3/5 debate potential 3/5

Teten: Generic VCs Lacking Differentiation Will Struggle in Upcoming Fundraising Cycles

David Teten · 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital · Dec 9, 2015 · at 9:13

David Teten, Partner at ff Venture Capital, discusses how platforms like AngelList and evolving market dynamics will disrupt non-differentiated venture capital funds.

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“The generic VC, meaning the GC that doesn't have an edge, and the conventional VC that doesn't have something special that they bring to the table, will, I suspect, find themselves challenged in the next two fundraising cycles.”

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More from David Teten

Opinion
Teten: Traditional Two-Partner VCs Are Threatened by AngelList
“But I think that the modal VC, two partners, and an admin, and maybe an analyst, is under threat from AngelList, because they can't possibly have the level of granular knowledge of different sectors that individual angels do.”
David Teten Dec 9, 2015 ▶ 17:19 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
Opinion
Teten: Sell Amazon Stock Due to Weak Retail Pricing Power
“I would probably sell On the grounds that, ah, it's not clear to me if when they eventually turn on the monetization spigot, ah, it will be impossible for other people to compete with them. In other words, the whole theory of Amazon, not unlike a lot of early-…”
David Teten Dec 9, 2015 ▶ 21:00 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
Assertion Not checkable as stated
Teten: Early-Stage VCs Spend 80% of Time on Deals They Reject
“One of the great frustrations of our friends who work at, ah, most other VCs at our stage is they spend 80% of their time talking with companies with whom they can't consummate an investment.”
David Teten Dec 9, 2015 ▶ 7:40 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
Assertion Not checkable as stated
Teten: AngelList Is Becoming the Operating System of Venture Capital
“We are certainly monitoring AngelList because there is no question that they are working up the food chain to make themselves the fundamental operating system of this asset class.”
David Teten Dec 9, 2015 ▶ 16:21 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
Prediction Held up
Teten: AngelList Will Expand Into Series A and Series B Rounds
“Absolutely.”
David Teten Dec 9, 2015 ▶ 18:18 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
Insight
Teten: Seed Stage VCs Should Be Generalists
“The philosophy of FF Venture Capital is that as seed stage investors, we should be generalists. We should keep our doors open wide to the broadest possible array of companies.”
David Teten Dec 9, 2015 ▶ 4:08 20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
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