Venture Fund Size Growth and Over Acceleration of Capital

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The chapter discusses the issue of venture fund size growth and the over acceleration of capital into late stage pre-IPO companies. It highlights the problem of managers being incentivized to scoop up money from LPs and deploy it into companies that may not necessarily deserve it. The chapter also touches on the difference in behavior and incentives between managers of large funds who receive management fees and those with smaller funds who rely on carry.

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Today’s show: David Weisburd hosts Elizabeth Yin, Zach Coelius, and Jason Calacanis to discuss trends in venture capital, including the growth of fund sizes (2:32), the resurgence of the Bay Area (33:42), the decrease in capital efficiency (51:12), the rise in unicorn companies but lack of liquidity (45:11), and top recent investments (57:27)!

Timestamps:

(0:00) David Weisburd hosts Elizabeth Yin, Zach Coelius, and Jason Calacanis to dive into the state of venture funds

(2:32) Venture funds are growing in size despite the slow market

(10:37) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at https://Squarespace.com/twist

(11:43) Exploring the performance: smaller funds vs. larger funds

(28:56) Northwest Registered Agent - Get a 60% discount on your next LLC at - https://www.northwestregisteredagent.com/twist

(29:49) Hustle Fund’s quantitative approach to evaluating startups

(33:42) Is the Bay Area officially back?

(43:51) LinkedIn Jobs - Post your first job for free at https://linkedin.com/twist

(45:11) Number of unicorns has increased but liquidity has decreased

(51:12) The decline in capital efficiency over the past decade

(57:27) Rapid-fire segment on top recent investments