The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Benchmark vs a16z: Why Stage Specific Firms Win | Windsurf Sells For $3BN | Decagon Raises at 100x ARR | Do Mega Funds Win the Future of VC | What Does Harvard's Losing Their For-Profit Status Mean for VC
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May 7, 2025 
Jason Lemkin, founder of SaaStr, and Rory O'Driscoll, a partner at Scale Venture Partners, dive into the dynamics of venture capital. They analyze the implications of the $3 billion Windsurf acquisition and discuss the competitive edge of stage-specific firms like a16z compared to others. The conversation covers the risk of AI-induced unemployment and its impact on the workforce, while also shedding light on what Harvard's for-profit status loss means for venture capital. They explore why mega funds might dominate the future landscape of investments.
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Focus vs Mega Fund Hit Rates
- Focused venture funds have higher hit rates but fewer total big wins than mega funds with broad portfolios.
- Mega funds capture more absolute wins but struggle to maintain success rates at scale.
Mega Funds' Strategic Edge
- Mega funds dominate by having massive capital allowing them to participate in all rounds and outbid competitors.
- They effectively bundle seed through late-stage investments as a loss leader for bigger payoffs later.
Founders Want Capital & Support
- Founders want investors who provide abundant capital with minimum hassle and maximum support.
- Investment strategy nuance matters less to founders than access to money and resources.