Understanding Fund Returners and Portfolio Strategies in Venture Capital

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Todays show:

Jason joins David Clark of VenCap to discuss what distinguishes longevity and success in VC (5:25), the importance of strategy and timing when selling (25:47), preparing with founders for when things may go south (48:43), and more!

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Timestamps:

(0:00) David Clark joins Jason.

(2:41) Looking at the data behind VenCap’s approach to alpha vs beta, managers and their over 500 investments to date.

(5:25) What distinguishes longevity and success in VC.

(9:15) Analyzing the data from David's chart covering 12,000 companies and the power law.

(10:34) Gusto - Get three months free when you run your first payroll at http://www.gusto.com/twist

(12:43) Portfolio strategy and finding that 1% of fund returners.

(18:59) The value of investing in a company over a longer period of time.

(21:23) Northwest Registered Agent - Get a 60% discount on your next LLC at - ⁠https://www.northwestregisteredagent.com/twist⁠

(22:17) The challenges VenCap faces when looking at seed managers.

(25:47) The importance of strategy and timing on selling.

(29:18 ) Uizard - Get 25% off Uizard Pro for an entire year at http://www.uizard.io/twist

(33:05) Managing successful GPs and having them ‘stay in the game’.

(41:49) The misunderstandings of the J-Curve.

(48:43) Preparing with founders for when things may go south.

(58:36) Founder Fridays message from Jason.

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LINKS:

Check out VenCap: https://www.vencap.com/

Watch the Brian Singerman episode here: https://youtu.be/o5Z0-d5w18M

Watch the Michael Kim episode here: https://youtu.be/a2FL_FvwoUA

Check out Founder Fridays: http://thisweekinstartups.com/meetups

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Follow David:

X: https://twitter.com/daveclark85

LinkedIn: https://www.linkedin.com/in/david-clark-6678b6b/?originalSubdomain=uk

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Follow Jason:

X: ⁠https://twitter.com/jason⁠

Instagram: ⁠https://www.instagram.com/jason⁠

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

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Thank you to our partners:

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*Gusto pricing shown in ad is based on pricing prior to March 2025

(21:23) Northwest Registered Agent - Get a 60% discount on your next LLC at - ⁠https://www.northwestregisteredagent.com/twist⁠

(29:18 ) Uizard - Get 25% off Uizard Pro for an entire year at http://www.uizard.io/twist

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Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland

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Check out Jason’s suite of newsletters: https://substack.com/@calacanis

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