Paige Finn DohertyFounding Partner, Behind Genius · Founding Partner at Behind Genius Ventures

What advice does Verdis Investment Management VP Jamie Rhode have for emerging managers for 2023?

29 Oct 2022 · 1 min

Watch on YouTube

0:58

In a brief interview, Jamie Rhode, Vice President at Verdis Investment Management, offers guidance to emerging venture fund managers on raising capital in 2022 and 2023. He cautions against being swayed by popular market "hot takes" and stresses the importance of grounding decisions in data. Rhode cites a regression analysis comparing early‑stage venture returns since the 1980s with public market performance and U.S. GDP, finding virtually no correlation. Consequently, he advises managers not to pause or alter their investment strategy due to concerns about market pullbacks or valuation shifts. Instead, they should keep their focus on core investing activities, rely on the underlying mathematics and data, and maintain confidence in their approach despite broader market conditions.

Chapters

What key benchmarks and advice should emerging managers keep in mind for 2022 and 2023 to set themselves up for success in raising? I would say, you know, it's really important to not get swayed by the hot takes that are out there. We ran a regression model comparing early-stage venture returns back to the 1980s against the public markets and US GDP. And there's little to no correlation there. Whoa. So if you're worried about a market pullback or valuations, like, no, keep your head down, stay focused, do what you do best, which is investing. And I think it's really important to, again, look at the math and look at the data. And that should give you the validation that you shouldn't take a pause necessarily in your investing just because you're worried about market conditions.