The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: VCs are Spreadsheet Monkeys and are Commoditised | Why Fees and Carry Misalign GPs and LPs | Why Founders Will Realise Multi-Stage Funds Damage Seed Rounds | Why We Need European Sovereignty More Than Ever with Taavet Hinrikus
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Apr 28, 2025 
Taavet Hinrikus, Partner at Plural and co-founder of Wise, discusses the commoditization of venture capital and why traditional VCs often miss the mark. He critiques the 2:20 fee structure, arguing it misaligns interests between GPs and LPs. Taavet emphasizes the need for founders to be wary of multi-stage firms impacting seed rounds negatively. He also highlights the urgency for Europe to build its own tech infrastructure amidst geopolitical challenges, focusing on fostering independence and resilience in the tech landscape.
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VCs Are Spreadsheet Monkeys
- VCs relying solely on spreadsheet metrics miss the depth of early-stage founder assessment.
- Founders' operating experience deeply enriches investment insight and partnership quality.
Operating Experience Shapes Investment
- Operating experience shapes ability to predict product-market fit and outcome potential.
- Having been founders, Plural's GPs offer deeper, more empathetic partnership to startups.
Challenge Traditional VC Fees
- Question the traditional 2% management fee as it misaligns VC and LP incentives.
- Lower fees allow more investments and better alignment with founders' success.