This week on Turpentine VC, we’re re-releasing Erik Torenberg’s interview with Logan Bartlett, partner at Redpoint and host of The Logan Bartlett Show. They discuss Redpoint's approach to venture, patterns in the VC ecosystem, and the strategies of venture's most consequential firms.
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RECOMMENDED PODCAST:
🎙️This Won't Last
Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.
Apple Podcasts: https://podcasts.apple.com/id1765665937
Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz
YouTube: https://www.youtube.com/@ThisWontLastpodcast
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LINKS:
Redpoint: https://www.redpoint.com/
Check out the Logan Bartlett Show: @theloganbartlettshow
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X / TWITTER:
@loganbartlett
@Redpoint
@eriktorenberg
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
- Technology disruption patterns repeat across different eras (railroads, telephones, internet, AI), making historical knowledge valuable for predicting future trends.
- Venture firms are fundamentally shaped by the era they emerged in, creating lasting structural impacts on how they operate.
- Management fees can become a "sticky drug" influencing fund size growth decisions, even when larger funds may not optimize returns.
- Failed venture capitalists are called millionaires while failed founders often go broke, illustrating the risk asymmetry in the ecosystem.
- Founders Fund succeeded by differentiating through philosophy rather than history with "if you can't compete on history, you can compete on philosophy."
- After the dot-com crash, RedPoint stayed out of the limelight for 15 years and focused on work, demonstrating how failure shapes firm culture.
- In venture competition, Logan believes RedPoint needs to "throw a perfect game" to win against established firms, showing the hierarchy's persistent advantage.
- Venture capital is significantly overfunded by 3-5x current levels, creating unsustainable market dynamics.
- Historically, only about 7 companies (not 50) create most of the equity value in each technology cycle, making winner identification crucial.
- The key question for AI is whether it will create new companies (like the internet era) or primarily benefit incumbents (like mobile).
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