The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Doug Leone, Bill Ackman, Bill Gurley and Orlando Bravo on "Does Price Matter"; When to Pay Up vs When to Stay Disciplined, The Biggest Lessons on Price Discipline from 8 of the World's Best Investors
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Feb 9, 2024 
Doug Leone, Global Managing Partner at Sequoia Capital, discusses the nuances of pricing in venture capital. He emphasizes when it might be wise to pay more for certain companies while maintaining price discipline. The conversation delves into investment strategies, the balance of risk, and the critical role of market leadership. Leone highlights the importance of adapting to changing dynamics and building relationships with founders. The episode also critiques current market trends that can cloud rational investment decisions, advocating for a disciplined evaluation approach.
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Investment Aperture
- Loosen your investment aperture at the top of the funnel (seed stage).
- Be more selective and quality-focused as you move down to later stages (venture, growth, pre-IPO).
Deployment-Focused Investing
- A "deploy, deploy, deploy" mentality, ignoring price, can be dangerous.
- This approach may work during momentum-driven markets but will fail during corrections.
Price Sensitivity and Stage
- Be less price-sensitive with smaller initial investments in early-stage companies.
- Exercise more caution when doubling down on later-stage investments, even with high conviction.