
Motion Blur Dan Gray – What's Wrong with Venture?
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Sep 19, 2025 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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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.
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.
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.

