Bradley Tusk says VC is dead. But the 'fixer' in him is just getting started
Mar 26, 2025
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In this engaging discussion, Bradley Tusk, co-founder of Tusk Venture Partners and the mind behind mobile voting initiatives, shares his candid views on the state of venture capital, claiming it's been 'effectively dead' for four years. He explores the pivot to equity-for-services to assist startups maneuvering through regulatory mazes and reflects on his impactful role in Uber's early growth. Tusk also unveils his mobile voting project aimed at boosting voter turnout, emphasizing the importance of accessible technology in democracy.
Bradley Tusk believes the traditional venture capital model is ineffective, prompting his shift to an equity-for-services approach focused on regulatory navigation.
Tusk's mobile voting initiative aims to enhance voter turnout by leveraging technology to simplify the voting process for underrepresented groups.
Deep dives
Decision Against a Fourth Venture Fund
The speaker discusses the choice to not pursue a fourth venture capital fund after three successful previous funds. This decision stemmed from a realization that the traditional venture capital model was less lucrative for him compared to the equity-for-services model he utilized earlier in his career. He found that while managing a traditional fund involved numerous complexities and obligations to investors, switching to equity for services allowed him to retain 100% of the profits while focusing on what he genuinely enjoys: navigating regulatory challenges for disruptive technologies. Ultimately, this strategic shift reflects a desire to simplify his work and pursue financial gains in a more efficient manner.
Understanding Venture Capital's Current State
The conversation highlights a significant downturn in the venture capital landscape over the past four years, characterized by a lack of exits and liquidity. Many venture funds have not been able to return capital to their limited partners, leading to increased pressure on startups to secure financing in a challenging market. The speaker suggests that venture capital's current struggles may be partially attributable to an overheated market in previous years, resulting in excessively high valuations that are no longer sustainable. This situation necessitates a correction, as the traditional pathways for startups to receive funding and scale their operations become more restricted.
The Impact of Political Dynamics on Startups
The speaker emphasizes the critical intersection of technology and policy, noting how political dynamics directly affect market conditions and startup operations. With a background in political consulting and experience as a government official, he underscores the importance for tech founders to understand the regulatory landscape relevant to their industries. By learning about the legal challenges they face and the influence of political power on their operations, startups can better navigate potential hurdles and avoid detrimental outcomes. This advice is particularly vital for those entering regulated sectors like healthcare and finance, where compliance plays a key role in success.
Mobile Voting Initiative and Increasing Civic Engagement
The speaker introduces a mobile voting project aimed at improving voter turnout and reducing polarization in elections. Through pilots conducted in various states, the initiative has demonstrated success in allowing individuals, including military personnel and those with disabilities, to vote conveniently via smartphone. This approach not only streamlines the voting process but also targets the low engagement levels typically seen in primary elections, which often skew political representation. The goal is to create a more inclusive voting environment where mainstream public opinion is reflected, thus encouraging legislative action that better represents the interests of the general populace.
According to Bradley Tusk, co-founder and managing partner of Tusk Venture Partners, venture capital has been “effectively dead for the last four years." A self-proclaimed “Fixer,” Tusk recently made the decision not to raise a fourth fund. Instead, he decided to go back to his roots and launch an equity-for-services firm aimed at helping early stage startups navigate tech policy and regulation.
Today on Equity, Rebecca Bellan sat down with Tusk to explore his pivot from traditional VC to equity-for-services, when it’s worth the risk to ask for forgiveness rather than permission, and why he’s dedicated to scaling mobile voting.
Listen to the full episode to hear more about:
The limitations of the current VC model and its lack of liquidity.
How Trump’s tariffs and other measures have spooked the markets.
Tusk’s experience advising early-stage founders on regulatory climates, including the crucial role he played in Uber’s early growth.
Insights into his mobile voting project aimed at increasing voter turnout through secure, open-source technology.
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