Sethi: VCs demand high ownership targets because they are bad pickers
Arjun Sethi · Arjun Sethi – A Technology Company that Deploys Capital at Tribe, Venture is Eating the Investment World 10 (Capital Allocators, EP. 240) · Mar 14, 2022 · at 1:02:10
Arjun Sethi, co-founder of Tribe Capital, argues why traditional venture portfolio construction targets rigid ownership percentages.
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“A lot of the reasons why people focus on ownership, it's a hard thing to say is that they're just bad pickers. So if you say I can focus on 20, I want 10, 15, 20% ownership in this company. It's because they believe that if they make failure somewhere else that we need this company at least return the fund and get to a higher multiple.”
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