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Navigating the Fund Landscape
Exiting the power law investment model can be beneficial for the industry, ensuring a more balanced market with fewer inflated valuations. The industry is experiencing a period of adjustment as some funds face challenges and shut down. Early-stage investors like Sequoia still seek power law returns from potential investments, emphasizing the need for companies with significant growth potential. However, the disconnect between public and private markets, marked by inflated valuations, is detrimental not only to fund managers but also to founders.