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

20VC: Founders Fund's Trae Stephens on Why The Most Competitive Deals are the Worst, Why No Company is Successful Because of their VC, Why We are Making ZIRP Mistakes Again Today, Why Loss Ratio is BS and Upside Maximisation is Everything

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

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Underestimating Winners and Accountability in Investments

Investors often underestimate the potential size of their winning investments, as seen in examples like Shopify and Facebook. By setting specific targets in investment memos, such as at Founders Fund, investment teams are held accountable for their predictions. This practice ensures that only high-conviction investments are made, aligning with the culture of making bets that can significantly impact the fund's returns.

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