Navigating Venture Capital: Power Law Outcomes and Investment Strategies

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Todays show:

Altimeter's Jamin Ball joins Alex Wilhelm to discuss VC-founder dynamics, fund returns, rapid fundraising, and its impact on M&A. They cover public vs. private valuations, startup liquidity, AI's influence, SaaS trends, and Jamin’s outlook on IPOs and exits.

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Timestamps:

(0:00) Jamin joins Alex to kick off the show

(6:30) Alignment of incentives between VCs and founders

(10:25) LinkedIn Jobs - Post your first job for free at https://www.linkedin.com/twist

(11:54) Venture capital allocation demand and its impact

(15:55) Comparison of returns between small and large venture funds

(21:54) Beehiiv - Get 30 days free and 20% off your first 3 months at https://www.beehiiv.com/twist

(23:23) Power laws in startups and venture capital's impact

(24:19) Effects of rapid fundraising cycles on founders

(31:33) CLA - Get started with CLA's CPAs, consultants, and wealth advisors now at https://claconnect.com/tech

(32:59) Raising large rounds and long-term commitments

(35:15) Venture capital's influence on startup M&A activity

(37:38) Public vs private market valuation disparities

(39:24) Future of startup liquidity and exit scenarios

(46:06) Proposals for realigning venture capital funds and founder incentives

(47:41) Impact of AI on startup growth and venture capital

(52:20) SaaS multiples and cloud software market analysis

(57:43) Software spending trends and startup optimism for 2024

(1:00:15) Procurement scrutiny in startup budgets and market differentiation

(1:01:17) Promising companies and Jamin Ball's investment outlook

(1:01:28) Expectations for IPOs and startup exits in the coming year

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Mentioned on the show:

Join Jamin’s substack here: https://cloudedjudgement.substack.com/

Jamin’s article: https://cloudedjudgement.substack.com/p/clouded-judgement-102524-misaligned

Check out Altimeter: https://www.altimeter.com/home

Follow Bill Gurlery on X: https://x.com/bgurley

Subscribe to the TWiST500 newsletter: https://ticker.thisweekinstartups.com

Check out the TWIST500: https://www.twist500.com

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Follow Jamin:

X: https://x.com/jaminball

LinkedIn: https://www.linkedin.com/in/jamin-ball-49366137

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Follow Alex:

X: https://x.com/alex

LinkedIn: ⁠https://www.linkedin.com/in/alexwilhelm

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Follow Jason:

X: https://twitter.com/Jason

LinkedIn: https://www.linkedin.com/in/jasoncalacanis

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Thank you to our partners:

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(31:33) CLA - Get started with CLA's CPAs, consultants, and wealth advisors now at https://claconnect.com/tech

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Great TWIST interviews: Will Guidara, Eoghan McCabe, Steve Huffman, Brian Chesky, Bob Moesta, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland

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