In this episode of The Learning Corner, the focus begins with the crucial task of managing raised funds, setting the stage for a discussion on the collapse of Bowery Farming and the pivotal investment decisions involved. The narrative unfolds to explore unexpected risks and factors contributing to startup failures, emphasizing the importance of managing business dependencies and evaluating market size. The strategy and impact of venture reserves on investments are examined, followed by insights into the dynamics of follow-on investments. The episode also delves into the future and industrialization of the venture ecosystem, contrasting opportunities and strategies for small versus large funds, and concludes with an analysis of risk-return profiles.

Dirty Secret: Venture Reserves are Not Always a Good Thing - Laura Thompson from Sapphire Partners

The Future of Venture: Industrialization or Back to Basics? - Patricia Halfen Wexler

(0:00) Introduction and Importance of Managing Raised Funds

(0:38) Collapse of Bowery Farming and Investment Decisions

(2:33) Unexpected Risks and Factors Leading to Startups' Failures

(5:07) Managing Business Dependencies and Market Size Evaluation

(8:23) Venture Reserves: Strategy and Impact on Investments

(13:34) The Dynamics of Follow-On Investments

(17:10) Future and Industrialization of the Venture Ecosystem

(20:01) Opportunities and Strategies for Small vs. Large Funds

(23:06) Risk-Return Profiles and Closing Remarks

In this episode of The Learning Corner, we begin with an exploration of the pivotal role seed investors play in the venture ecosystem. The discussion then shifts to the unique traits and challenges faced by solo General Partners. The potential valuation surge of AI startup Perplexity is analyzed, alongside broader monetization strategies within the AI space. Insights from an emerging venture manager provide a fresh perspective on current trends. The conversation also covers the importance of sustaining collective success in seed investing and offers guidance on navigating career transitions within venture management.

AI Startup Perplexity in Funding Talks to More Than Double Valuation to $8 Billion - WSJ

Reflections of an Emerging Manager - Equal Ventures

(0:00) Introduction to the Learning Corner and the role of seed investors

(3:32) Solo GPs: Traits and Challenges

(5:30) AI startup Perplexity's potential valuation surge

(9:25) Monetization in the AI space

(11:20) Insights from an emerging venture manager

(15:17) Seed investing trends and maintaining collective success

(17:55) Navigating career transitions in venture management

This episode of The Learning Corner delves into the key insights from the Q3 2024 PitchBook NVCA Venture Monitor, analyzing its implications for the venture ecosystem. The discussion highlights how the current fundraising market is reshaping founder strategies and explores the consequences of limited distributions on venture capital dynamics. Performance metrics in venture funds are examined, alongside considerations for LPs. The challenges faced by emerging funds and their pursuit of non-consensus investments are also addressed. The episode wraps up with closing remarks and a call to action for listeners.

(0:00) Introduction and key insights from Q3 2024 PitchBook NVCA Venture Monitor

(2:45) Impact of the fundraising market on founder strategies

(5:28) The effects of limited distributions in venture capital

(10:26) Performance metrics in venture funds and LP considerations

(14:26) Challenges for emerging funds and the pursuit of non-consensus investments

(17:43) Closing remarks and call to action

This episode of The Learning Corner delves into the nuanced debate of ownership versus selection in venture capital, setting the stage for a deeper exploration of Precursor's approach to seed stage investing amidst the current reckoning. The conversation shifts to LP discussions surrounding crypto and AI, offering a glimpse into evolving investment interests. SaaS seed valuations are analyzed, drawing parallels with AI trends. The episode also addresses the responsibilities founders face in a selective market, navigating fundraising hurdles. Finally, General Catalyst's diversified investment strategy is examined, highlighting its focus on customer value strategies.

General Catalyst Layers in Financing to Boost Its Fortunes - Strictly VC

(0:00) Introduction and episode overview; Ownership vs. selection in venture capital

(0:35) The seed stage reckoning; Precursor's strategy in seed stage investing

(4:48) LP conversations about crypto and AI investments

(6:52) SaaS seed valuations and AI parallels

(10:05) Responsibilities in a picky market; Founders navigating fundraising challenges

(13:15) General Catalyst's diversified investment strategy; Customer value strategy vehicle

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