This chapter sheds light on the concept of 'dry powder' in the venture capital industry, explaining that the large amount of money raised by VCs is not actually in their bank accounts but held by limited partners. It discusses the dynamics between VCs and LPs, how fees are charged, and the accuracy of valuations. The speakers also explore the impact of valuations on funds, the decision-making process for deploying capital, and the risk of running out of money too quickly.

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