VC Fund

“So yes, I think the short answer is these IPOs will unlock a lot of liquidity. It'll be returned after lockup periods back to LPs. The LPs will then feel more comfortable reinvesting in future VC funds, which in turn should then unlock capital, allow more depl…”

“The two primary reasons are most VC funds have pension funds, and those pension funds have tax liabilities that LLCs impact, and so VC funds cannot risk impacting their VC fund LPs.”

“You have 30 positions in the VC fund, and only a couple are going to outperform the entire fund. I know the GP isn't good enough to identify what those companies are at the point of first check.”

“There are still some. There are less. I think when I got there in San Francisco in 2013, it looked a little more like a small, smaller town, maybe Austin or St. Louis, where everyone really trusted everybody. And had deep connection, and naturally it's grown. …”

“Just put the rest into NASDAQ, and you're gonna make more than most VC funds anyway”

“We're seeing those funds who were able to raise capital in, in that kind of vintage because of the really high valuations, and everything's kind of settled you know, they're doing pretty poorly, and in, in terms of you know, their Portfolio construction, right…”

“75% of VC funds or maybe north of that went to like 10 funds, or sorry, capital raised for venture funds went to like the biggest ones, the GCs, the Andreessen's.”

“Often there is an investor on the cap table that's been there for a long time, and their model, it's like the tail wagging the dog here, their model is they need to see some liquidity for the next fund, so they're often very problematic reasons.”

“The reason that it's not so bad that funds have this incubation strategy is like, they would so much rather just back the generational team. And so if you are building a generational company and you have this world-class generational team, You can rest assured…”

“This is, for the record, an idea that won't work, and it won't, like, and there are more reasons than that, that it won't work. It's like, also, they love not having to share their fund, like, returns with the general public, and this would change that, like, …”

“Trey Stevens partner at Founders Fund and co-founder Vanderell just posted this good essay in Pirate Wires about how, like by the time that there's a market trend that you can like build a VC fund around, like it might be too late because the power law company…”

“I think the first style of funds that goes out of businesses is funds where there's three, four or five partners and only one of them is good. And then that person gets tired of holding everybody on their shoulders, and they leave and set their own thing up, a…”

“We also see more secondary funds also entering Europe, and this also provides more liquidity. Because we had quite a situation where it was quite hard for VC fans to exit their current portfolio, which put a lot of pressure on them, because LPs wanted to have …”

“I think we both know it's super hard to do direct investment. That's not something for starters. So I get that question a lot. And I also recommend usually to just invest in funds for now.”

“15% a year is better than most VC funds make. They're in the single digits.”

“All of the funds I've seen have, like, pretty horrible politics, and I think YC has the least politics of all of them.”

“It's better than asking another VC for an intro to a VC fund. Don't do that. Like don't ask Pablo for an intro to another Canadian VC fund. They're going to be like, well, Pablo's not investing. Like why, why is he just.”

“So in the longer term, I think this is going to be more of a public requirement Then it is going to be something that's got to achieve gigaton scale and make, you know, the ROI that the VC funds are looking for.”

“You cannot make money in venture if at least per fund you don't have a couple billion dollar outcomes. There's a few exceptions, but as a rough rule, not, let's say you do 30 investments in your venture fund. Not all 30 have to IPO, but if a couple don't, or a…”

“This is why I hate, by the way, when VC funds do this ranking, I don't know if a lot of people know this, of like zero or one, like, is it winning, is it dead or alive? And some funds, like if they claim it's dead, they just stop supporting it.”

“I don't think so. I know that that's happened in the past. I don't just, I just don't see it happening this cycle. And probably if it were to happen, it would have already happened.”

“We think that the way that college entrepreneurship is fostered by institutes, centers, clubs at schools is bad. We think that the VC funds that are targeting college entrepreneurs are just looking for poached deal flow. We have a better way of doing it by bui…”

“I think that there are a set of funds, maybe like 50 to 75 VC funds that in partnership with other funds and entrepreneurs know how to guide a company towards a big outcome or a public offering.”

“I didn't want to work for a firm that didn't have black partners, which was 99% of all VC funds.”

“VC funds that don't build those capabilities, whether they are dedicated crypto funds or not, are going to not be able to maintain an edge and keep up with the pace of innovation and the, I guess, innovations that are coming out of web three.”

“I wish everybody would have to post their returns publicly every quarter. Competition. Let's see what everybody, let's see the hands people are playing. You know, this business is very opaque, right? You can be a VC and never have a return for like 10 years.”

“And even if, when it comes to VC funds, I think the median VC funds returns worse than index funds. That's what research has showed.”

“They are far, far, far too homogeneous. We need much greater representation in decision makers and boardrooms and, you know, people who are the ones making decisions at VC funds. We need much, much greater diversity and representation.”

“I think diversification is way overrated. I think that VC funds are generally way over diversified”

“Even still, I think some of the great VC funds, they don't understand how to sell. And this isn't VC. This is kind of VC where the liquidity comes way too early.”

“I mean, this is a business where I make, you know, six percent when we put out our money, and so we don't have the luxury of a VC fund where you're picking lottery tickets, and one company can really carry a bunch of losses.”

“The Volcker rule was something that had been put in place, which effectively kept banks from being able to make investments into You know, VC funds or other funds into startups.”

“I think that we've seen with our female founders is that if you are looking to pitch a fund with a website that's full of all men partners, that tends to really signify a certain culture within that firm, and so I think that as VC funds add more diversity to t…”

“And the problem is, you know, if you overpay by 50 or a hundred percent for one deal or two deals in a 30 deal fund, that's not a big deal. But if you do it for all of your deals, or most of your deals, now your cost basis may be doubled. And now that means th…”

“Most funds run five to seven year cycles. I think there's a huge opportunity in the 10 to 15 year cycles, because That's honestly how long it takes to develop the big things in this world, if not longer”

“I think that over time, as funds get larger, have to play the more traditional game, but right now, this is working pretty well for us.”

“It's probably one of the worst startups you can think of.”

“For us, we've always played the long game in terms of marketing, which is the best marketing we can do is the companies we invest in, and working them really well, and if we do that right, that's how we build our brand, and that's how we build our reputation”

“The traditional structure is basically that VC funds charge fees and then most of those fees go to the partner salaries. We don't, instead we put our fees towards these operating teams. So for our competitors to copy us, they'd have to kind of dramatically cha…”

“The best VC funds lose money at least half the time, which means half of our, If we're doing a good job, half of our investments will fail.”