This Week in Startups

Top 5 VC funds raise big $, venture capital DPI is back, and Sequoia’s offer to LP’s | E1981

Jul 17, 2024

Jamie Rhode, a partner at Screen Door, champions diversity in venture capital while Matthew Mulvey from Liquid 2 highlights early-stage investments. They discuss the resurgence of distributed paid-in capital (DPI) in Silicon Valley, focusing on Sequoia's innovative strategies and liquidity options for limited partners. The conversation emphasizes the importance of empowering underdog founders from diverse backgrounds and the evolving trends in capital investment. Their insights reveal shifting dynamics in venture capital and the critical need for inclusive funding practices.

01:01:01

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Episode guests

Matthew Mulvey

Jamie Rhode

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Episode notes

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Quick takeaways

Balancing sophistication levels by including non-accredited investors in VC funds

Strategic approach of repurchasing shares to boost DPI for Limited Partners

Supporting underdog founders and consistent vintage year exposure in venture funding

Deep dives

Innovative Investment Approach for Fund Accreditation

Supporting the idea that a percentage of the fund should include non-accredited investors alongside institutional capital, the podcast explores a novel approach that advocates for 50% of the fund to be available for non-accredited investors. This approach aims to balance the sophistication levels within the fund, allowing room for unsophisticated investors to co-invest with those who are already affluent.

Intro

2min

DPI Resurgence in Silicon Valley

7min

Sequoia Capital's Strategic Move with Stripe Shares

5min

Navigating Liquidity in Venture Capital

12min

Empowering Underdog Founders and Leveraging Voice Data in Startups

2min

Empowering Diverse Founders in Venture Capital

6min

Evolving Landscape of Venture Capital and Diversity

3min

Shifting Trends in Venture Capital Investment

14min

The Decline of First-Time VC Funds

10min

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Todays show:

David Weisburd hosts Jamie Rhode, Matthew Mulvey, and Jason Calacanis to discuss DPI coming to Silicon Valley (2:11), demographic data on the backgrounds of Unicorn founders (26:55), and trends for limited partners (36:10), and more!

Timestamps:

(0:00) David Weisburd intros Jamie Rhode, Matthew Mulvey, and Jason Calacanis

(2:11) DPI, Wiz acquisition, and economic impacts on distributions

(5:48) Consistent vintage exposure and proactive DPI management strategies

(8:55) OpenPhone - Get 20% off your first six months at https://www.openphone.com/twist

(10:22) Sequoia's liquidity approach and LP needs in venture capital

(17:13) The role of emerging managers and secondary markets in VC

(25:44) AssemblyAI - Get 100 free hours to start building at https://www.assemblyai.com/twist

(26:55) Unicorn founder demographics and underdog success

(35:05) CommandBar. Visit https://commandbar.com/twist⁠ to get a custom live demo.

(36:10) LP preferences, the challenges for emerging managers, and democratizing venture investments

(50:54) The decline of first-time funds, motivations for fund creation, and innovations in fundraising