Lemkin: A whole generation of recent VC funds will only return 1X
Jason Lemkin · Jason Lemkin: Crowdstrike, WTF Happens From Here? Wiz Rejects Google’s $23BN Acquisition Offer|E1181 · 20VC with Harry Stebbings · Jul 24, 2024 · at 42:10
SaaS investor Jason Lemkin discusses venture capital performance on 20VC, arguing that many recent fund vintages will struggle to yield strong returns for LPs.
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“This one isn't like epic, but I just think we're sitting on a ton of one X funds in venture. Just so many one X funds. They'll never get out of one X. A whole generation. And listen, I barely saw I, when I was, when I first joined venture, I could see the tail end of the 2000 funds. I mean, I wasn't there in venture, but I could see what they looked like 1415 years out and just doing one X in a 2000 vintage fund was like top decile, I think. I'm not saying we're going through that, but there is such a, there are so many funds that will end up the whole generation of one X funds and how it's just founders aren't yet paying the price or not getting the benefits, but that's one thing people aren't touched. I, you know, I wouldn't be surprised if the majority of funds from the last few years are one X funds.”
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