Beezer Clarkson discusses manager dynamics and what happens when venture capital partners separate or discontinue raising funds.
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“I think they're way higher than we statistically can capture.”
quote is from the automated transcript, cleaned for reading:
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More from Beezer Clarkson
Opinion
Clarkson: LPs were complicit in market froth by feeding larger funds
“LPs were just as complicit in all of this as anybody else because fed the beast, invested in the funds, and LPs have a habit of if they find something that's working, you want to put more money in it, but if Putting more money in it means the funds get larger …”
Beezer ClarksonFeb 27, 2023▶ 7:49Venture Capital Panel – Beezer Clarkson, Chris Douvos, and Joelle Kayden (Capital Allocators, EP.299)
AssertionNot checkable as stated
Clarkson: Overallocated LPs are freezing venture commitments for 12 to 24 months
“We're hearing from our fellow LPs that they are stuck on and committing this year, potentially next year, because of exactly this. They did so much because they felt they had to preserve relationships, and they were looking to make money for whatever instituti…”
Beezer ClarksonFeb 27, 2023▶ 14:39Venture Capital Panel – Beezer Clarkson, Chris Douvos, and Joelle Kayden (Capital Allocators, EP.299)
Disclosure
Clarkson: Sapphire underwrites Series A funds to 3x net, seed to 5x
“The only thing that we go in looking at it from an underwriting perspective is we look to underwrite series A exposure to a three X net, which means we want the funds to be able to produce that, and then we can get into portfolio construction and see the bar i…”
Beezer ClarksonJan 20, 2020▶ 23:56Beezer Clarkson – Sapphire Gem of Early Stage Venture (Capital Allocators, EP.120)
Insight
Clarkson: Venture halts if tech workers and founders lack financial rewards
“If the entrepreneurs and the employees are not getting the rewards that they need to stay in the business, then this whole business stops. Like GPs and LPs can't make this business go. It is a hundred percent the people making the companies go.”
Beezer ClarksonJan 20, 2020▶ 46:24Beezer Clarkson – Sapphire Gem of Early Stage Venture (Capital Allocators, EP.120)
AssertionSupported
Clarkson: Venture valuations across stages have retrenched to 2019-2020 levels
“We're seeing a retrenchment in almost every single level, back to 19 or 20 pricing, which doesn't mean to say it's falling off a cliff.”
Beezer ClarksonFeb 27, 2023▶ 33:49Venture Capital Panel – Beezer Clarkson, Chris Douvos, and Joelle Kayden (Capital Allocators, EP.299)
Insight
Clarkson: A manager's deal logic matters more than dollars invested
“It's always a question, not just what you've done as far as dollars invested, but why someone likes a deal. It really speaks to us about what makes this manager different, how they think of a deal, how they think of the space. It's in those kinds of questions …”
Beezer ClarksonSep 23, 2021▶ 6:50Mike Smith and Nikhil Basu Trivedi – Footwork Ventures (Manager Meetings, EP.12)
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