This Week in Startups
This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.
Jason Calacanis
PodcastAI
PodcastAI

Dry Powder in Venture Capital, VC Ratings, and more with Grady Buchanan and Victor Gutwein | E1895

E1895 • Feb 9, 2024 • 90 mins

David Weisburd hosts Grady Buchanan, Victor Gutwein, and Jason Calacanis to discuss dry powder in VC (1:38), VCs rating VCs (14:22), a study on whether returns persist in venture capital (29:33), and much more

Key Points

  • LPs are finding it challenging to differentiate among the multitude of emerging managers, highlighting the importance of GPs articulating their growth strategy, industry understanding, and firm-building intentions beyond just fund performance.
  • The persistence of top quartile returns in venture capital funds emphasizes the significance of access for LPs, with 45% of previously top-performing funds continuing to outperform, making the selection of GPs both an access and a stock-picking game for investors.
  • Startups in the Midwest are often more derisked with lower valuations, providing unique investment opportunities in industries like AgTech and infrastructure, where founders typically have industry experience and customer validation even at early stages.
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