Founder backing founders for companies, studios, and platforms.
Joined September 2007
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First-time founders focus on product
Second-time founders focus on distribution
Lifetime founders focus on the mission
Early Stage VC is 100% power-law so
Diversification of returns matters less.
Individual investments have capped downside /exponential upside
Late-stage VC is increasingly a normal distribution w significant downside & capped upside
So diversification of returns matters
Hear @SamirKaul1 discuss dangers of conservatism in venture & importance of upside maximisation & not selling winners too early. As LPs @Beezer232 @MKRocks @AlexBangash how important is diversification of distributions vs pure cash on cash returns? buff.ly/2uOg0ZA #vc #lp
Sometimes it is the very VCs no LP can imagine anything of who produce the returns that no LP can imagine.
Smart VC managers stick to past models like AOL, Blockbuster, Kodak.
Squeezing every last dollar until they fall by the wayside
Four Reasons why good VCs fail
- Generational Issues
- Their networks atrophy
- They raise too much money
- The game changes; they get DISRUPTED
In my first 12 years as an LP, I backed founders that backed founders.
Now I simply back founders building
Studios
Platforms
API-based funds
Mount holyoke looking to hire its inaugural CIO for its investment office buff.ly/2L4PiIt
The wealthiest companies are buying stock back, which is a reason why the churn in S&P is up. The AVG tenure of companies on the S&P 500 will shrink from 33 yrs to just 12 yrs by 2027
The world's wealthiest people and companies are holding record levels of unused cash
Where is it going? The IMF says large companies around the world are overwhelmingly choosing not to reinvest much of it. They're hoarding cash and buying back stock. axios.com/money-companies-in…
Platforms, Studios, and API-based funds are 100X harder than traditional VC They are characterized as risking taking rather than traditional rent seeking
They thrive in the face of increasing entropy and uncertainty
They have extreme skin in the game
Alex Bangash retweeted
Global residential real estate is worth over $168 trillion. With a T.
Software is coming to remake the world’s largest marketplace through better/faster/cheaper property management and @kul and his team at @zeuslivinginc will be the ones to do it.
thetwentyminutevc.com/kulvee…
Excited about what @dsog is building. CA homebuyers can sign up for beta.
I’ve been working on @RedDoorHQ to change how we think about #Mortgages. Our customers got rates almost 0.5% lower than anywhere on the market, down payment as low as 3%, and closed in 12 days. Looking for 10 more #homebuyers in CA before going public [email protected]
Today, it is impossible to produce superior long term VC performance at the early stage unless you build a firm with structural advantages. The days of pure access are over at the early stage.