Misaligned Incentives Between GPs and Founders with Altimeter's Jamin Ball | E2045
This Week in Startups
The Venture Capital Surge
This chapter explores the significant capital influx into venture capital over the past five years, driven by low interest rates and shifting investment dynamics. It highlights the challenges smaller funds encounter in attracting capital, amidst a trend toward larger entities and prolonged private company durations influencing market valuations.
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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
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Follow Jamin:
LinkedIn: https://www.linkedin.com/in/jamin-ball-49366137
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Follow Alex:
LinkedIn: https://www.linkedin.com/in/alexwilhelm
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Follow Jason:
LinkedIn: https://www.linkedin.com/in/jasoncalacanis
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