Uncapped with Jack Altman Uncapped #8 | Josh Kopelman from First Round Capital
150 snips
May 1, 2025 AI Snips
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The Venture Arrogance Score
- The "Venture Arrogance Score" measures how much of the total market value a fund must capture to return its capital and profits.
- Large funds require capturing an unrealistically high percentage of exits, challenging their sustainability in a competitive ecosystem.
Returns Concentrate in Booms
- Venture returns cluster in extreme boom periods, not throughout equilibrium.
- Holding investments through frothy markets yields the majority of returns, rather than selling early at perceived peaks.
Hold Through Frothy Cycles
- Resist the urge to exit companies too early during frothy market conditions.
- Instead, use secondary opportunities to lock in partial returns while maintaining a long-term position.