Saved by 0xsmac
The Death of a Venture Fund
There are some phenomenal products in some of the companies that were overfunded and are haunted by past decisions. The valuations at which these companies raised capital set them on the wrong path - a path that fails to attract and reward critical talent, a path that incentivizes excess expenditure for growth at the expense of structuring a... See more
Scott Belsky • The Great Sobriety for Venture Investing, Where To Start with AI, & Undeniable Data
The Venture Arrogance Score: A simple formula to evaluate a VC firm's business modelWhat percent of "total annual startup value creation" does that fund need to capture in order to generate their desired return.You just need five numbers to calculate it...1) Fund Size and Investment Window (this is simple...just take the size of their last fund --... See more
Paul Venuto • feed updates
Risks to the trend
- LPs too slow to react, VCs lack incentives to admit limitations in current processes
- Poor quant performance
- Downturn in private markets