venture capital fund

“One of the brilliant provisions in this reconciliation bill is they're actually disallowing retirement funds to invest in alternative assets, including startups and venture capital funds.”

“You're going to end up waiting a long time to get your money back. You're going to be locked up and a top performing fund is returning two and a half X after 15 years, which is not much better than kind of investing in the S&P where you could sell that anytime…”

“All of the, if you look back in history since 2000, all of the best performing funds of all times were the ones that were formed right in the middle of the downturns. Oh, three, oh eight, oh nine. These are the vintages that have always been the best.”

“My hunch is that by the time the cash is actually distributed, the returns are going to revert to that orange line mean which means there are hundreds of billions of dollars in markdowns sitting in LPs and GPs portfolios that are likely to come because nobody …”

“We're probably at peak capital being managed in venture funds right now, and will likely decline for the next decade.”

“The United States limited partner market is essentially closed for business. They have huge misallocation problems. The endowments are sort of closed. The universities are closed. A lot of the family offices are licking their wounds.”

“I think we're back to, it's a year on the road to close a fund.”

“I think what it means is that the two hundred million dollar fund today becomes 50, the five hundred million dollar fund needs to be a hundred and the billion dollar fund needs to be 200.”

“Because you have to be in basically the top two funds, five funds, to beat the returns you make just by buying an index of the NASDAQ.”

“If I could own pieces of the GP of both of you, I would, but as a person today, I would not start my own fund. It's just very difficult.”

“Now, you don't typically start to see returns until year 10 and oftentimes year 12 or year 13. Which means that they don't really pay out until year 16 or 17.”

“Having a killer fund has zero correlation with your ability to then have a next killer fund as an LP.”

“45% of their capital went into flat or down rounds, and they had a negative net return on that allocation of capital across 13 funds, and if they had put that, if they had never invested in flat or down rounds, Then they would have doubled their IRR overall as…”

“75% of funds lose money.”

“Top decile performance of DPI funds smaller than seven hundred and fifty million average return of 4.76 X and funds larger than a billion 2.42 X. Funds below seven hundred and fifty million across that time period represented 95% of top decile performers with …”

“Now, if you have a seven billion dollar fund, and we do the same math through, you know, you've got to return two hundred and ten billion. Seven billion to 70 times three X is two hundred and ten billion, which, ah, exceeds the total venture-backed M&A and IPO…”