How I Invest with David Weisburd

E215: The Pursuit of Uncorrelated Returns in Venture Capital w/Dan Kimerling

15 snips
Sep 19, 2025
Daniel Kimerling, Founder and Managing Partner of Deciens Capital, shares his innovative approach to venture capital focused on long-duration investments in financial services. He discusses how his firm aims for uncorrelated alpha, rejecting the typical venture hamster wheel of markups. Dan delves into his concentrated portfolio strategy targeting 10-15 companies to achieve 5x net returns, all while maintaining radical transparency with LPs. He argues that the future power-law winners will emerge from the next generation of financial institutions, not just apps.
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INSIGHT

Providing Uncorrelated Alpha

  • Deciens offers an uncorrelated alpha stream inside venture by avoiding common VC plays and focusing on differentiated exposure.
  • They intentionally pursue highly asymmetric outcomes and accept bipolar fund results to deliver that alpha.
ADVICE

Explicitly Align LP Expectations

  • Be radically transparent with LPs about portfolio construction and expected asymmetry from the first conversation.
  • Seek LPs at the right lifecycle stage who want alpha, not more diversification.
INSIGHT

Concentration Beats Spreading Thin

  • Computational simulations showed you should choose either extreme concentration or extreme diversification in VC portfolios.
  • Deciens argues concentrated portfolios let partners actively compound value by watching a small basket closely.
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