The Learning Corner by Precursor Episode #1: Welcome To The Learning Corner
Sep 26, 2024
The hosts kick off with a deep dive into misconceptions surrounding venture capital, highlighting insights from notable VCs. They discuss the disruptiveness of Open AI's new fundraising efforts in Silicon Valley. The conversation shifts to the intricacies of fund sizes and investor expectations, revealing the balancing act for fund managers. Lastly, they unpack the importance of presenting metrics effectively to investors, shedding light on the challenges faced by early-stage founders in a competitive landscape.
AI Snips
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Transcript
Episode notes
Fundraising Advice for New VCs
- Run a concentrated investment strategy and buy a lot of ownership.
- Most LPs prefer this approach, making fundraising easier.
Vanilla Ice Cream with Sprinkles
- Charles Hudson recalls advice from an experienced seed investor.
- The investor suggested leading with familiar fund aspects and treating innovations as secondary.
The Problem with AUM
- Increasing fund size changes a manager's relationship with founders.
- Larger checks don't necessarily translate to proportionally increased value add.