This episode of The Learning Corner explores the evolving dynamics of venture scalability and the pressures that come with it. Expectations for the venture capital industry over the next few years are discussed, with a focus on capital concentration among top-tier VCs. Strategies for non-multistage funds during downturns are examined, highlighting the impact of General Catalyst's new continuation fund. The viability and trade-offs of continuation funds, particularly for smaller funds, are analyzed. The conversation also touches on the changing landscape of seed investing and the importance of maintaining customer focus in a shifting VC environment.

General Catalyst is working on a 'continuation fund' worth up to $1B, sources say by TechCrunch

Neal Sarraf, Forum Ventures from LinkedIn

(0:00) Introduction and the role of pressure in venture scalability

(0:39) Expectations for the venture capital industry in the next 3-5 years

(1:56) Capital concentration among top-tier VCs and its impact

(4:52) Strategies for non-multistage funds during economic downturns

(7:46) Analysis of General Catalyst's continuation fund and its implications

(11:21) Viability and trade-offs of continuation funds for smaller funds

(12:44) The evolving landscape of seed investing

(14:10) Maintaining a consistent focus on customers in a shifting VC environment

(19:53) Sponsor message

(21:02) Closing remarks and appreciation

This episode of The Learning Corner we have another member of the investment team joining us, Marina Girgis! The discussion then shifts to a comprehensive analysis of seed valuations and the various factors that influence them. The conversation continues with an examination of non-consensus deal sourcing and the diligence required in such investments. The impact of current market conditions on CRV's fund returns is also discussed.

Big funds, small funds, and the changing tide by Jordan Nel

A venture capital fund does something rare: give money back by The New York Times

(0:00) Introduction and welcome to the podcast, Marina Girgis!

(1:47) Seed valuations aren't valuations by Nnamdi Iregbulem

(6:22) Perspectives on seed valuations: LPs and fund size

(11:40) Big funds, small funds, and the changing tide by Jordan Nel

(17:12) A venture capital fund does something rare: give money back by the New York Times

(21:05) Closing remarks

This week on the Learning Corner we discuss the importance of transparency in LP-GP relationships especially in a time where the growing need for liquidity is top of mind for LPs. We also delve into a rising interest in AI-first roll-ups, the evolution of tech-enabled service providers, and the management of legacy assets. The episode wraps up with insights into risks and strategies in AI seed investing especially as a B2B AI application.

The AI-First Roll-Up by Euclid Insights

Thinking through the future for LLM companies...and what this means for B2B AI startups by Sarah Tavel

(2:05) Buying Time - Unrealized Returns - Get Used to Waiting! - Anthony Kwesi Hagan

(3:24) The need for liquidity in venture markets

(6:29) Institutional pressures for liquidity

(9:02) Secondary markets and liquidity opportunities

(9:53) The AI-First Roll-Up - Euclid Insights

(11:04) Tech-enabled service providers and legacy assets

(15:07) Thinking through the future for LLM companies...- Sarah Tavel

(17:08) OpenAI's innovations and their implications

(18:50) Risks and strategies in AI seed investing

Charles Hudson and Mia Farnham kick off the first Learning Corner episode. This week we delved through Hunter Walk's piece on VC misconceptions, the impact of Open AI's new fundraising and Lead Edge Capital's information hierarchy shared in letter form.

(0:00) Introduction and Background of Precursor Ventures

(4:38) 24 Venture Capitalists Tell You "What One Thing Do They Wish People Better Understood About VC" by Hunter Walk

(10:16) Trends in Fund Size and LP Expectations

(15:19) Open AI's New Fundraise is Shaking Up Silicon Valley - The Economist

(26:23) Lead Edge Capital's Hierarchy of Reported Information - Shared via Sheel Mohnot LinkedIn

(29:53) Adapting to Investor Expectations and Conclusion