The Learning Corner by Precursor

In this episode of The Learning Corner, the conversation begins with an engaging overview of the current venture ecosystem, setting the stage for a discussion on M&A trends in venture capital. The focus then shifts to the unique challenges and dynamics faced by solo founder startups. The episode explores the rise of legal AI startups and their significant impact on the industry, followed by insights into AI's broader influence on professional services. The discussion also addresses how to navigate valuation resets within the venture capital landscape. The episode concludes with thoughtful closing remarks, bringing together the key themes explored. Half of Startup M&A is Pre-Seed/Seed by Carta The Percentage of Startups With a Solo Founder is On The Rise by Carta Legal AI Startup Harvey Set to Double Valuation to $3B by Bloomberg Corrections Across Funds by Jackie DiMonte (0:00) Introduction and Venture Ecosystem Overview (1:52) M&A Trends in Venture Capital (5:04) Solo Founder Startups and Team Dynamics (10:38) The Rise of Legal AI Startups and Their Impact (13:10) AI's Influence on Professional Services (15:29) Navigating Valuation Resets in Venture Capital (19:47) Closing Remarks

In this episode of The Learning Corner, the conversation opens with a warm welcome, setting the stage for an exploration of transparency in venture capitalists' investment memos. The discussion then transitions to a presentation on the lessons learned from mistakes of omission in investing, offering valuable insights into recognizing and avoiding missed opportunities. The episode also delves into a LinkedIn post discussing the intersection of SaaS founders, AI, and evolving business models, highlighting the innovative ways these elements are reshaping the industry. Why Venture Capitalists Rarely Share Investment Memos by Andrea Funsten Mistakes of Omission by Robert Vinall Sorry To Break An Uncomfortable Truth to SaaS Founders by Manny Medina (0:00) Introduction and welcome (0:38) Article: Venture Capitalists and Investment Memo Transparency (6:43) Presentation: Lessons in Mistakes of Omission in Investing (13:41) LinkedIn post: SaaS Founders, AI, and Evolving Business Models

In this episode of The Learning Corner, the discussion kicks off with insights into venture financing, setting the groundwork for a deep dive into Bench's shutdown and the dynamics between investors and founders. The conversation then navigates the complexities of venture debt, highlighting potential pitfalls, and addresses trust issues in founder-investor relationships. An exploration of Silicon Valley's unique venture capital landscape is followed by strategies tailored for non-Valley founders. The episode also delves into venture capital economics and fund strategies, comparing exits in biotech and emerging sectors. Accounting Startup's Sudden Shutdown Adds to Fintech Woes by The Information Silicon Valley is so dominant again, its startups devoured over half of all global VC funding in 2024 by TechCrunch Atlas XIV And Reflections On The VC Math Problem by LifeSciVC (0:00) Introduction and venture compensation insights (0:52) Bench's shutdown and investor-founder dynamics (2:52) Venture debt and its pitfalls (4:38) Trust issues in founder-investor relationships (7:27) Silicon Valley's venture capital landscape (9:24) Strategies for non-Valley founders (13:22) Venture capital economics and fund strategies (17:13) Comparing biotech and emerging sector exits (19:35) Closing remarks and next episode preview

This is the last episode of 2024 for The Learning Corner, and it's packed with great insights from across the ecosystem. The discussion first shifts to the dynamics of founders choosing firms and people, offering recommendations for repeat founders and insights into risk assessment. The episode delves into investment strategies, emphasizing timing and due diligence, and compares public and private market investing. An exploration of the history and evolution of venture capital is provided, alongside an analysis of founder preferences and decision-making. The dialogue highlights significant learning moments and predictions for the venture ecosystem, wrapping up with closing remarks and expressions of gratitude. Repeat Founders and the Risk of a False Positive - Rob Go Invest Now, Investigate Later - Zain Rizavi What Is Venture Capital Now Anyway? - The New York Times (0:00) Introduction and welcome (0:43) Sponsor: Allegoord team (1:29) Founders choosing firms and people (4:02) Recommendations for repeat founders and risk assessment (6:21) Investment strategies: timing and due diligence (9:53) Comparing public and private market investing (11:43) History and evolution of venture capital (16:56) Understanding founder preferences and decision-making (18:03) Biggest learning moments and predictions for the venture ecosystem (19:08) Closing remarks and thank yous

In this episode of The Learning Corner, the conversation begins with an introduction to the series, leading into a discussion on graduation rates from seed to series A. The analysis delves into factors influencing these rates and emphasizes the importance of patience in investment. The focus then shifts to the balance between profitability and growth in startups, followed by insights on building reputation and personal brand within the venture ecosystem. The episode explores marketing strategies in venture capital and discusses Aaron Levie's post about AI agent pricing. A look into the future landscape of B2B SaaS is provided before wrapping up with closing remarks and expressions of gratitude. Percent of startups make the leap from Seed to Series A - Peter Walker Building a Reputation, Not a Brand - Benedikt Langer Fun AI Questions - Aaron Levie (0:00) Introduction to The Learning Corner (0:48) Graduation rates from seed to series A (2:06) Factors influencing graduation rates and the importance of patience in investment (6:01) Balancing profitability and growth in startups (7:30) Building reputation and personal brand in the venture ecosystem (10:23) Marketing strategies in venture capital (17:15) Discussion on Aaron Levie's post about AI agent pricing (21:26) The future landscape of B2B SaaS (21:54) Closing remarks and thanks

In this episode of The Learning Corner, the conversation opens with insights into current market turbulence, setting the stage for a discussion on navigating silence in Silicon Valley. The episode then explores limited partners' perspectives on the future of venture capital in 2025 and examines the evolving dynamics of early-stage ventures. The narrative shifts to Sequoia Capital's business model evolution, highlighting adaptive strategies in a changing market. The discussion continues with a focus on enhancing founder relationships and providing robust venture support, emphasizing innovation within the venture capital sector. The episode concludes with closing thoughts and appreciation for the audience. In Silicon Valley, No Answer Is an Answer by Chris Neumann LP Predictions For Venture Capital In 2025 by Forbes Has Sequoia Capital outgrown its business model? by The Economist (0:00) Introduction and market turbulence insights (0:48) Article: Navigating silence in Silicon Valley (6:02) LP perspectives on VC's future in 2025 (10:44) Evolving dynamics in early-stage ventures (13:03) Sequoia Capital's business model evolution (16:55) Adapting strategies in a shifting market (17:45) Enhancing founder relationships and venture support (19:51) Innovating within the venture capital sector (20:03) Closing thoughts and appreciation

In this episode of The Learning Corner, the journey begins with an introduction to the series and a lively discussion about ChatGPT. The conversation then delves into the concept of Service as a Software, weighing its pros, cons, and cost implications. The exploration continues with a look at AI and SaaS models within the Precursor portfolio, emphasizing the balance between services and scalability in product development. A brief sponsor message from Euclid Insights is shared. The dialogue compares AI to historical technological advancements, enriched by personal anecdotes on its practical use. The episode concludes with closing remarks and a heartfelt thank you to listeners. The Siren Song of Services by Euclid Insights AI Eats The World by Benedict Evans (0:00) Introduction to the Learning Corner & ChatGPT discussion (2:39) Service as a Software: Pros, Cons, and Cost Implications (6:30) AI and SaaS Models in the Precursor Portfolio (9:54) Balancing Services and Scalability in Product Development (10:29) Sponsor: Euclid Insights (15:47) Comparing AI to Historical Technological Advancements (17:13) Personal Anecdotes on AI's Practical Use (19:27) Closing Remarks and Thank You to Listeners

In this episode of The Learning Corner, the discussion kicks off with an introduction to the series, setting the stage for a deep dive into venture capital incentives and their impact on valuations. The conversation then explores the influence of large funds on market valuations and examines hiring strategies, debating the merits of missionaries versus mercenaries. Strategies for sustainable growth and the realignment of incentives are analyzed, followed by valuable seed investing insights from Hunter Walk. The episode also addresses the rise of generative AI in enterprise applications, before concluding with a sign-off. Misaligned Incentives by Jamin Ball Winning at Seed Investing Isn’t Just About When to Buy, but Increasingly Also When to Sell by Hunter Walk 2024: The State of Generative AI in the Enterprise by Menlo Ventures (0:00) Introduction to The Learning Corner by Precursor (0:50) Insights on VC incentives and valuation (5:11) Large funds and their influence on valuations (7:41) Hiring strategies: Missionaries vs. Mercenaries (9:11) Strategies for sustainable growth and realigned incentives (11:03) Seed investing insights from Hunter Walk (15:40) The rise of generative AI in enterprise applications (19:41) Conclusion and sign-off

In this episode of The Learning Corner, the focus begins with the crucial task of managing raised funds, setting the stage for a discussion on the collapse of Bowery Farming and the pivotal investment decisions involved. The narrative unfolds to explore unexpected risks and factors contributing to startup failures, emphasizing the importance of managing business dependencies and evaluating market size. The strategy and impact of venture reserves on investments are examined, followed by insights into the dynamics of follow-on investments. The episode also delves into the future and industrialization of the venture ecosystem, contrasting opportunities and strategies for small versus large funds, and concludes with an analysis of risk-return profiles. Wilted greens: How a leaf-eating pathogen, failed deals brought down Bowery Farming - Pitchbook Dirty Secret: Venture Reserves are Not Always a Good Thing - Laura Thompson from Sapphire Partners The Future of Venture: Industrialization or Back to Basics? - Patricia Halfen Wexler (0:00) Introduction and Importance of Managing Raised Funds (0:38) Collapse of Bowery Farming and Investment Decisions (2:33) Unexpected Risks and Factors Leading to Startups' Failures (5:07) Managing Business Dependencies and Market Size Evaluation (8:23) Venture Reserves: Strategy and Impact on Investments (13:34) The Dynamics of Follow-On Investments (17:10) Future and Industrialization of the Venture Ecosystem (20:01) Opportunities and Strategies for Small vs. Large Funds (23:06) Risk-Return Profiles and Closing Remarks

In this episode of The Learning Corner, we begin with an exploration of the pivotal role seed investors play in the venture ecosystem. The discussion then shifts to the unique traits and challenges faced by solo General Partners. The potential valuation surge of AI startup Perplexity is analyzed, alongside broader monetization strategies within the AI space. Insights from an emerging venture manager provide a fresh perspective on current trends. The conversation also covers the importance of sustaining collective success in seed investing and offers guidance on navigating career transitions within venture management. 3 Things Founders Will NEVER Hear From a Solo GP - Ubiquity Ventures AI Startup Perplexity in Funding Talks to More Than Double Valuation to $8 Billion - WSJ Reflections of an Emerging Manager - Equal Ventures (0:00) Introduction to the Learning Corner and the role of seed investors (3:32) Solo GPs: Traits and Challenges (5:30) AI startup Perplexity's potential valuation surge (9:25) Monetization in the AI space (11:20) Insights from an emerging venture manager (15:17) Seed investing trends and maintaining collective success (17:55) Navigating career transitions in venture management