Other People's Money with Max Wiethe Venture Capital’s Collision with Public Markets, the Dry Powder Bubble, and VC Metrics that Lie | James Wang of Creative Ventures
Nov 25, 2025
James Wang, General Partner at Creative Ventures and author specializing in AI and deep tech investing, dives into the collision of public and private markets. He discusses the challenges of traditional VC metrics and the looming dry powder bubble affecting valuations. Wang offers insights on the future of AI, emphasizing its practical limits and the importance of distinguishing hype from reality. He also critiques fund strategies, urging VCs to focus on meaningful process and team dynamics rather than misleading early performance metrics.
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Public And Private Markets Are Converging
- Public and private markets are blending as VC funds grow into PE-like sizes and hold public equity.
- Large private companies can behave like semi-public firms, reducing incentives to IPO and changing market dynamics.
Low Rates Fueled VC's Size Expansion
- VC expanded because institutions needed higher returns in a low-rate environment and funds had to deploy ever-larger checks.
- That growth pushed venture into larger, more capital-intensive deals that resemble growth or PE rounds.
Allocators Split Between New And Incumbent VC
- Some allocators now prefer earlier-stage, niche managers to reduce correlation with public growth exposures.
- Yet many institutions remain locked into big incumbent VCs due to prior allocation decisions and re-ups.
