The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Most Downloaded Episode of 2019 with Bill Gurley, General Partner @ Benchmark Capital
Dec 23, 2019
Bill Gurley, General Partner at Benchmark Capital, shares his journey from Wall Street analyst to top venture capitalist. He discusses the impact of the dot com boom and bust on his investment mentality. Gurley believes the current challenge is an oversupply of capital, prompting a debate on valuation strategies. He emphasizes the importance of market sizing and brand recognition in fundraising, and reflects on his collaborative investment approach at Benchmark, highlighting the need for capable founders and a supportive environment.
AI Snips
Chapters
Books
Transcript
Episode notes
Unconventional Path to VC
- Bill Gurley's path to Benchmark was unexpected, starting with Wall Street and being told he needed 20 years of experience before entering VC.
- Frank Quattrone's offer to move him to Silicon Valley and introduce him to VCs changed his trajectory.
Silicon Valley's Risk Tolerance
- Silicon Valley forgets risk quickly after market busts, leading to increased risk-taking over time.
- High burn rates in current companies create higher risk than in the dot-com bust.
Valuation as a Mental Trap
- Do not turn down deals solely based on valuation, especially if the company has high growth potential.
- Consider the potential for high returns when evaluating investment opportunities.
