Chapter
Measuring the duration of venture funds
57:54 - 1:04:22 (06:28)
The average duration for a successful venture fund is around five to seven years to call 90% of the capital and return one x DPI. Most of the funds today are in the definition of the J curve, making it important to measure how long it takes the delta t to call committed capital.
Clips
Despite the upcoming hard period with restructuring and cap table changes, the speaker argues that he would rather be an investor today than in previous years due to the corrected valuations.
57:54 - 1:00:08 (02:13)
Summary
Despite the upcoming hard period with restructuring and cap table changes, the speaker argues that he would rather be an investor today than in previous years due to the corrected valuations. Emotions need to be separated from investing for long-term success.
ChapterMeasuring the duration of venture funds
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Private equity firms with poor returns will find it hard to attract limited partners, despite being in the midst of their J curve.
1:00:08 - 1:01:24 (01:15)
Summary
Private equity firms with poor returns will find it hard to attract limited partners, despite being in the midst of their J curve. The problem is particularly acute in the US and Europe, with the Middle East and South Asia holding up better.
ChapterMeasuring the duration of venture funds
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The J Curve, which explains the time it takes for a venture capital fund to return a profit, typically takes around five to seven years, but many funds in vintages 2008 to 2021 have not yet hit this average.
1:01:23 - 1:03:02 (01:38)
Summary
The J Curve, which explains the time it takes for a venture capital fund to return a profit, typically takes around five to seven years, but many funds in vintages 2008 to 2021 have not yet hit this average. This means there is a cohort of impaired capital allocation.
ChapterMeasuring the duration of venture funds
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Venture capitalist Bill Gurley discusses the current state of venture capital, including the need for a reset, the importance of fundamental business value creation, and the potential benefits for investors.
1:03:02 - 1:04:22 (01:19)
Summary
Venture capitalist Bill Gurley discusses the current state of venture capital, including the need for a reset, the importance of fundamental business value creation, and the potential benefits for investors.