Dan Gray, Head of Insights at Equidam, dives into the intricacies of venture capital and its pitfalls. He discusses how top firms concentrate reputation and capital, potentially sidelining unconventional founders. From the perspective of LPs, Dan explores the dynamics of portfolio risk and the debate over whether VC behaviors stem from collusion or incentives. He also emphasizes the importance of 'legibility' in startups and shares insights on emerging managers and innovative funding strategies. Listen for his hot takes on shaping the future of venture.
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insights INSIGHT
Concentration Feeds A Vicious VC Loop
Venture is concentrating capital and reputation into a few mega firms, creating monopoly-like dynamics.
That concentration compounds through perceived fundability and adverse selection, crowding out smaller entrants.
insights INSIGHT
Checklist Hiring Misses Outlier Founders
VCs increasingly apply checklists and social signals to founder selection, privileging certain backgrounds.
This approach likely misses true outliers — the very investments venture should seek.
volunteer_activism ADVICE
Allocate Toward Emerging Managers
LPs should shift allocation toward emerging managers to escape legacy network effects and capture true diversification.
Vet managers for financial literacy, portfolio construction, and differentiated strategy before allocating.
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A deeper discussion on the shortcomings (and benefits) of venture
Today we’re interviewing Dan Gray, head of insights at Equidam. We’ve been following Dan’s work throughout the past year and decided to have him on as we begin talking to more LPs about their allocation strategies and perspectives.
Dan’s twitter account is a great follow — he frequently shares lots of data-driven insights and rebukes for a lot of the “tried and true” aphorisms. This episode is filled with hot takes, enjoy!
🔗 Dan’s Bio
Dan is the Head of Insights at Equidam, a platform for startup valuation that helps make unconventional and novel ideas more legible for investors. With two decades of experience in and around startups, Dan’s career spans industrial engineering, gaming, fintech, and animation. He has worked across the startup ecosystem—from startup hubs to accelerator programs—supporting both founders and investors in navigating the complexities of venture capital.
Dan is a prolific writer and commentator on the startup landscape, contributing regularly to Crunchbase News and sharing insights on his blog, credistick.com, as well as on X. His work focuses on demystifying fundraising, startup valuation, and the shifting incentives in the venture capital ecosystem.
Exploring what makes great companies and technologies work. Brought to you by Grant Gregory & Hammad Aslam. Grant is a Partner at Cantos where he focuses on physical world technologies. Hammad is a Partner at Kivu Ventures, Susa’s growth fund. Learn more about the hosts: