[No. 3] Brand and AUM

Funds taking a more concentrated approach and investing in fewer companies most likely are assuming that one of their investments has an extremely large outcome while the rest either go to zero or whose exits are much more modest. This is called the power law dynamic and historically, this can be seen happening often in venture capital. Funds takin... See more

A firm’s brand as a proxy for a person’s reputation was born out of laziness and lack of access to data. No doubt, top talent enjoys working together, but it’s no longer a necessity. You are seeing this in spades right now within venture capital, as individual investors are banding together to support entrepreneurs who would prefer a group of hand-... See more

First, most venture capital firms use antiquated business models that prevent them from being able to move quickly, reach scale, and establish strong competitive moats. Most venture firms are built on a partnership model, like law firms.