Origins - Inside Venture Capital, Hosted by a GP and an LP Power Law VC Performance with David Clark (VenCap)
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Dec 13, 2023 
In this podcast, Nick Chirls, Beezer Clarkson, and David Clark discuss the challenges and strategies for unlocking performance in venture capital investments. They explore the role of emerging managers, the significance of dollar sizes and returns, and the importance of focus and long-term commitment. They also analyze venture capital performance data, discuss return expectations, and share valuable lessons from past market cycles.
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Power Law in Venture Returns
- Over 50% of VC investments don't return capital.
- A small number of companies drive the majority of returns.
VenCap's Investment Strategy
- VenCap focuses on established managers, typically from fund three onwards.
- They believe consistent strong performance comes from backing managers proven to invest in top companies.
Predictability vs. Performance
- Smaller funds can outperform larger ones due to the math.
- Predictability of success is key for LPs, especially with emerging managers.