Venture World
topic on 3 shows · 7 statements across 6 episodes
A Product Market Fit Show 
Capital Allocators 
20VC
7 statements about Venture World, every show
Sullivan: Buyouts cannot tolerate portfolio zeros like venture capital can
“In the venture world, the winners pay for a lot of losers and it's okay to have half your portfolio return nothing. In the buyout world, typically your winners are somewhere between two and a half and four and a half X, and then occasionally maybe you get an o…”
Sullivan: Sourcing managers via peer referrals is harder in buyouts than venture
“That's harder in the buyout world because people are much less prone to be working together. Normally they're competing with each other and A lot of buyout managers, by definition, if someone outbids them for a deal, then that person is stupid. They pay too mu…”
Singlehurst: Return on equity is critical at scale, yet anathema in VC
“One of the single most important factors is the return that you make on equity. And this notion, this concept is, is almost it's almost an anathema within the venture world.”
Ruberto: We never would have launched Uride if we understood venture capital
“If we actually knew what we were doing, and we knew about, like, the venture world as stars, we probably would have never started this company.”
Venture dry powder will support top startups even in a 40% downturn
“In the venture world, we've got an incredible overhang of capital. And a lot of new entrants who are here for good, and even if tomorrow the market went down 40%, you still have an incredible amount of dry powder ready to support the best companies.”
Unit economics matter more in venture capital than in private equity
“At scale, really paying attention to the business levers, and paying attention to unit economics, and figuring out if you're truly building a scalable model is really important, and probably more important in the venture world than the private equity world, si…”