VCs vs Entrepreneurs: Two Different Scales of Success

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The potential for wealth accumulation differs significantly between venture capitalists (VCs) and entrepreneurs. While a small number of VCs may achieve billionaire status, most accumulate net worths ranging from 10 to 20 million dollars. Many VCs may earn substantial annual incomes but see limited exits, with vast wealth potential often being split among partners and employees in their firms. In contrast, successful entrepreneurs can achieve extraordinary financial success on their own, with the potential for enormous payouts from their innovations. This highlights the disparity in the paths to success and wealth between these two professions.

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Todays show:

Alex Wilhelm joins Jason to discuss venture capital fund performance (15:02), potential big tech breakups (41:14), SF Standard piece analysis on Ben and Felicia Horowitz (47:04), startup shutdowns (1:11:28), and more!

Timestamps:

(0:00) Jason and Alex kick off the show

(5:31) Discussion on productivity and browsers with ChatGPT-4

(10:21) Coda - Empower your startup with Coda’s Team plan for free—get 6 months at https://www.Coda.io/twist

(11:54) Debate on regulations in the U.S.

(15:02) Deep dive into venture capital fund performance, IRR, and DPI

(25:37) Strategy of David Clark's fund of funds

(27:16) Realities of investing in venture capital

(30:02) Vanta - Get $1000 off your SOC 2 at https://www.vanta.com/twist

(30:53) Venture capital performance impact on LPs and future fundraising

(34:23) Consequences for new and small venture firms

(39:24) Fundrise - Sign up today at https://fundrise.com/TWIST