VC Investing Exploits Two Core Market Inefficiencies
seems like an appropriate time to repost this: https://t.co/jl8rkqEIxy TLDR: Investing is about capitalizing on market inefficiencies. There are two inefficiencies in VC.
AI's Potential Stalls as Imagination Lags Behind
Leveraging AI is mostly a failure of imagination more than capability. And that gap is widening.
Top Founders Now Priced Efficiently, Limiting Upside
This is actually kind of a contrarian take in a world where power-law thinking would suggest that price doesn't matter for the "best" founders.
Big Seed Rounds Aren’t Irrational, They Reflect
A mini rant about seed VC models and pricing. Seed VC's lament that rounds have gotten so big and varied and there is no definition of a seed round anymore. They tend to suggest this is a signal of irrational...
VC Valuations Driven by Fund Size, Not Market Reality
Most VC's price startups based primarily on their fund size, which drive their comfortable check size and target ownership. They then try to convince founders that a certain round size and valuation is "market" for their type of company and...
Prioritize Strong Intro to Associate Over Weak Partner Intro
I’ve completely changed my mind about this. A strong intro to an associate is much better than mediocre intro to a partner.
VCs Once Hailed Online Mattresses as Groundbreaking
It's kind of comical to think that 10 years ago VC's thought that selling mattresses and luggage online was innovation.
VCs Fund Any Future They See Thriving Today
Thought: VC's can bet on different versions of the future. But there is only one version of the present. In other words, VCs will believe any version of the future if they are excited by what's happening right now.
VC Success Lies in Platforms or Specialists, Not Verticals
This is actually a very interesting discussion. It's near consensus now that the only strategies that make sense in VC is large platform or small specialist. So it's kind of a hot take to say that verticalized venture doesn't work. A couple...