1min snip

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Are LPs Open For Business? What Does it Take to Raise a Fund Today? How Has What LPs Want to See in Fund Investments Changed? Why Do LP Incentive Mechanisms Need to Change? Which Funds Will be Hit Hardest with Beezer Clarkson @ Sapphire Partners

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

Understanding the Importance of Power Law in Venture Investing

As an experienced LP, if I could advise my past self before starting, I would emphasize the importance of understanding the power law in venture capital. Having a power law defining company in your portfolio drastically changes the dynamics and perception of the industry. It's not enough to rely on mediocre performances and small wins. Seeing the impact and growth of companies with a power driver in your portfolio is a game-changer. In a growth stage portfolio, it's much harder to achieve extraordinary returns compared to having a large fund with multiple exits. In early stage funds, having at least one company that returns the fund is crucial for success. You can't settle for small wins; you need to aim for big wins.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode