Apurva Mehta and Jack Altman on Sam Altman, CalPERS, and Liquidation Preferences | E1927

Key Points

• A well-chosen and experienced board member who is genuinely invested in a startup's success can be a significant asset, providing consistent outside perspective and valuable insights over a long period.
• Venture Capital Journal reports that CalPERS is increasing its venture capital allocations, signifying a broader trend of institutional investors like pension funds seeking higher returns from venture capital amidst a challenging environment for traditional asset classes.
• Recent trends show a rise in liquidation preferences over 1x in venture deals, particularly for Series B and later stages, which may indicate a protective measure for investors in a more cautious funding environment, but could also potentially obscure the true valuation of startups.