10+ hours of podcasts, in 5 minutes.
3 quotes from 2 episodes on How I Invest, each with a timestamped link to the source.
Extreme fees and AI alter how venture capital firms operate. David Weisburd points out that 3-and-30 fee structures push investor net returns down to median levels.
Unattractive market sectors offer immediate appeal to investors willing to ignore popular trends.
“The unsexiness of it immediately makes it sexy for you.”
Top venture capital firms charge up to 3-and-30 in fees. These high costs threaten to reduce strong gross performance to merely average net returns.
“What may end up happening is that the returns may continue to persist on a gross level, but the fees have gone so high, two and a half and 30 now at the top firms, some are even three and 30, that they may just be average on a net basis.”
Early-stage venture funds hire candidates capable of acting as full partners within 10 years. David Weisburd observes a complete shift away from employing junior spreadsheet modelers.
“Respectfully, what you're really saying is that you've completely changed your hiring practice from these analysts that are basically doing this analysis and doing these models to what I would call mini partners, somebody that you want to see a partner five to 10 years out.”
From Byron Ling on Why AI Replaces VC Sourcing but Not Judgment
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