Investment underwriting: people over ideas

This week on The Data Minute, Peter sits down with Vivek Ladsariya, Managing Director at Pioneer Square Labs, for a deep dive into the Seattle startup ecosystem and the evolving world of venture studios.

Vivek breaks down why Seattle has become the quiet giant of AI infrastructure, holding the second-highest concentration of AI talent in the US, and explains why the "locked up" talent at Amazon and Microsoft is finally breaking free. He also gives a candid assessment of the venture studio model, why many studios are "zombies," how AI is forcing them to pivot to a holding company structure, and why he actually encourages his Seattle founders to move to San Francisco.

They also discuss the economics of small funds vs. mega funds, why signaling risk is real for follow-on rounds, and the "unscalable" things emerging managers must do to compete. Plus: a look at an investment fighting the loneliness epidemic and a rare story of a VC voluntarily taking dilution to save a cap table.

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Chapters:
00:00 – Intro: Seattle, Studios, and AI
01:10 – Welcome Vivek Ladsariya
02:22 – How mega funds warped the SF market
05:08 – Inside Pioneer Square Labs
06:40 – The "Bar Test": Speed of funding in SF vs. Seattle
09:23 – Is Seattle talent trapped in Big Tech?
11:46 – The "Cracked Kid" vs. The Seasoned Exec
15:50 – Why Seattle is the #2 AI hub in the US
17:02 – Why Vivek wants Seattle founders to move to SF
20:10 – The case against remote work for startups
21:53 – Why Seattle is the infrastructure capital of AI
24:11 – The Venture Studio model: Why do VCs hate it?
27:10 – How AI is disrupting the studio model
29:00 – The HoldCo future: Hims & Hers and Liquid Death
31:22 – Using a studio to compete with mega-fund platforms
33:45 – Why PSL will never raise a mega fund
36:16 – The psychology of follow-on reserves
38:56 – Signaling risk: "Why didn't Andreessen invest?"
41:30 – Secondaries vs. holding onto winners
45:28 – Are LPs tired of mega funds?
46:31 – Why you can't be a solo GP forever
48:56 – Investing in the loneliness epidemic (Tin Can)
50:43 – The most value-add thing a VC can do
52:07 – Outro

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