The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Why Traditional VC is Broken: How VCs Learned Nothing from 2021 | Why LPs are More Important than Founders & Advice to Emerging Managers | Bull Case for Bytedance & Why TikTok's Ban Doesn't Matter with Mitchell Green, Lead Edge Capital
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Mar 28, 2025 
Mitchell Green, Founder and Managing Partner of Lead Edge Capital, shares insights from his extensive investment background in companies like Alibaba and ByteDance. He discusses the flaws in traditional VC models post-2021 and emphasizes the crucial role LPs play over founders. Green reveals why AI infrastructure is a poor bet and critiques the IPO market. He also argues TikTok's challenges won't impact ByteDance's value and warns of social media's dangers on youth mental health, calling for urgent regulation.
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AI Infrastructure Play
- AI infrastructure investments resemble website investments in 1997: incumbents often prevail.
- Customer distribution and go-to-market strategy, not just tech, are crucial for success.
Gravity Acquisition
- Lead Edge Capital acquired Gravity, a budgeting software company for small governments, for around $50 million.
- Despite not being a "generational" company, Gravity grows at 50-60% yearly and highlights Lead Edge's focus on less glamorous but profitable ventures.
SaaS "Living Dead"
- Many SaaS companies with 50-200 million in revenue and slow growth face challenges.
- They are too small for traditional PE and struggle to IPO, resembling "living dead."