Monetary Matters with Jack Farley Venture Capital’s Collision with Public Markets, the Dry Powder Bubble, and VC Metrics that Lie | James Wang of Creative Ventures
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Nov 25, 2025 James Wang, General Partner at Creative Ventures and author on AI, delves into the evolving landscape of venture capital, highlighting its collision with public markets and excess dry powder that inflates valuations. He critiques traditional VC metrics, emphasizing their misleading nature. Wang also shares insights on the impact of AI on investing strategies and the importance of adaptability for VCs. He warns about the concentration of power among top firms and explores how geopolitical factors influence capital flows in deep tech.
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Public And Private Markets Are Colliding
- Public and private markets are blending as VCs and PE compete for similar companies and stages.
- Large private companies act like semi-publics, reducing incentives to IPO and changing market dynamics.
Why VC Got So Large
- Venture grew because institutions needed higher-return assets during low interest rates, forcing larger deals and checks.
- That structural growth pushed VCs into investing like private equity, changing supply and demand for capital.
LPs Split Between Niche And Legacy Bets
- Some institutions now prefer earlier-stage niche VCs to reduce correlation with public markets.
- Yet many LPs remain stuck reinvesting in big legacy VCs because of past allocation decisions.
