The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: The Truth About Multi-Stage Firms; Why Portfolio Services are for VCs not Founders | Why Politics is Rife & Decision-Making is Broken in Large VCs | Why Reserves are Bad for Founders & How Boutique Firms Will Win with Mark Goldberg @ Chemistry

Oct 25, 2024

56:21

Snipd AI

Mark Goldberg, Managing Partner at Chemistry and former partner at Index Ventures, dives into the intricate world of multi-stage venture capital. He reveals how portfolio services often prioritize VC interests over founders, discussing the pitfalls of large partnerships and decision-making breakdowns. Goldberg forecasts a shift from commoditized to boutique VC firms, reflects on the highs and lows of unicorn investments, and emphasizes the importance of genuine investor-founder relationships in shaping the future of venture.

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Quick takeaways

Multi-stage firms often prioritize portfolio services for their own benefit, which can hinder personalized support for founders.

Chemistry aims to redefine venture capital by fostering direct relationships between experienced investors and founders, enhancing quality over quantity.

Successful early-stage investing relies on strong relationships between investors and founders, emphasizing mentorship alongside financial backing.

Deep dives

The Purpose of Portfolio Services Teams

Portfolio services teams in venture capital often serve the interests of the VCs rather than the founders, which can create inefficiencies for the startups. This structure is seen as an attempt to scale something inherently unscalable, where the focus shifts from founder relations to administrative management. Such teams might provide support but often dilute the investment's personalized attention that founders need. A more optimal model frames a direct relationship between experienced investors and founders, ensuring that founders' needs are prioritized.

Intro

4min

Navigating Venture Capital Dynamics

10min

Understanding Fund Size and the Evolution of Series A Investments

2min

Navigating VC Landscape: Fundraising and Portfolio Dynamics

16min

Navigating Venture Capital Dynamics

6min

Shifting Perspectives on Valuation and Sustainable Practices in AI

2min

Navigating Fintech Investment Challenges

12min

Exploring the Future of Automation and Innovation in Venture Capital

4min

Mark Goldberg is a Managing Partner and Co-Founder at Chemistry, a $350M fund announced just yesterday with the mission to lead the best seed and Series A rounds. Before Chemistry, Mark was a Partner at Index Ventures, where he led early stage investments in Plaid, Bridge, Pilot, Anrok and Persona. Prior to Index Ventures, Mark was one of the first business hires at Dropbox.

In Today’s Episode with Mark Goldberg We Discuss:

1. The Truth About Multi-Stage Firms:

Why are portfolio services there to help the investing partners and not the founders?
What are the most broken elements within a multi-stage firm?
How does decision-making break down in large partnerships?
When is the right time to work with multi-stage firms? When is not?

2. From Boutique High Margins to Commoditised Low Margins:

With the immense amount of cash that has entered VC, will returns simply get worse?
Who will be the winners in the next 10 years of venture?
Who will be the losers? What can they do today to change this?
What element of the future of venture are not enough people spending time on?

3. Lessons from Leading Unicorn Company Rounds:

What happens to all the unicorns with insanely high prices they cannot grow into?
What has been Mark’s biggest hit? What did he learn?
What has been his biggest miss? How did that change his go-forward approach?
Does Mark agree that 90% of VC do not add value?

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