The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Why Fund Returners Are Not Enough Anymore | Why Sequoia Had the Best Strategy at the Worst Time | What it Takes to Be Good at Series A and B Today | Benchmark Leads Manus Round: Should US Funds Invest in Chinese AI
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May 1, 2025 
In this insightful discussion, venture capitalists Jason Lemkin, Rory O'Driscoll, and Fabrice Grinder share their expertise. They highlight that fund returners are no longer sufficient in today’s market, and discuss the impressive yet precarious strategy Sequoia employed during tough times. They also explore the essentials of succeeding at Series A and B rounds amidst rising risks. The conversation delves into the AI landscape, debating whether US funds should invest in Chinese AI amidst geopolitical tensions, and how the investment culture differs between the US and Europe.
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VC Driven by AI Bubble
- Venture capital is in an AI-driven bubble with record investments concentrated in AI companies.
- Other sectors get less attention, making current VC investing contrarian and best for funds diversifying beyond AI.
IRR Hardest to Control
- IRR (Internal Rate of Return) is the hardest metric to control due to unpredictable exit timing.
- Success depends more on picking winners and managing valuations than on timing exits.
Use Secondaries to Boost IRR
- To improve IRR, sell some shares in winners through secondary markets when valuations become too high.
- Recycling capital this way manages risk while preserving upside potential in strong companies.