Porteous: Display ad industry persists despite failing advertisers and ad tech collapse
Will Porteous · 20VC: What Metrics LPs Really Use To Measure Manager Success, Why 10 Year Fund Structures Really Do Not Work & Why Venture Is So Similar To The Movie Business with Will Porteous, General Partner @ RRE Ventures · Jul 31, 2017 · at 23:35
Will Porteous is General Partner and COO at RRE Ventures. He critiques current digital media monetization models while discussing why RRE backed digital publisher The Outline.
0:00 / 0:22exact quote · 22.3s
720p mp4 · rendered on demand · StarZero watermark
“As we look around kind of the media landscape, I'm constantly amazed at how poorly served most advertisers are. It's part of the reason we've seen such a collapse in the ad tech sector. The fact that we still really have a display advertising industry, to me, is testament to how little we have done to create great ad experiences.”
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 Will Porteous
Porteous: Consumer Startups Must Rely on Organic Growth Over Paid Acquisition
“I think the way we'll see new consumer experiences launched is actually going to be much more organic. You know, it's the trends, the sharing of new application experiences among communities that we as investors have to really watch for because we can't compet…”
Porteous: Building a startup requires 80-100 hour workweeks for 4-5 years
“Are they really ready to commit the 80 to a hundred hours a week for four to five years that it really takes to build a company?”
Porteous: Traditional 10-year venture fund structure no longer works
“The ten-year fund structure with a couple of extensions doesn't really work. It was invented 40 years ago, And it creates a ton of challenges for everyone involved.”
Porteous: Early-stage venture capital operates identically to the movie business
“All of us, you know, in the early stage of venture business spend our time really thinking about talent, and we could just as easily be talking about, you know, leading actors. I mean, we're looking for massively talented people who can play a leading role in …”
Porteous: Secondary options in 2008 would have smoothed LP allocation shock
“The whole industry watched allocations shrink after the liquidity crisis of 2008. If LPs had had a defined exercisable secondary option in their funds. In many cases, they would have pulled it at that point, and it could have been a smoother period for everybo…”
Porteous: Time diversification is as essential as stage or sector diversification
“Diversification by time is, is one of the most important instruments that, that we have as investors. And it's actually crucial that in composing a fund, it's not heavily concentrated in a single time period, just as you don't want it to be concentrated in a s…”