Precursor Ventures argues that venture funds must be transparent and understandable to LPs. The speaker criticizes "super compounder" models that rely on recognizable companies to appear legitimate, and warns that expecting one person to manage all private investments is unrealistic and risky.
I think funds have to be legible to LPs. And I think the challenge with some of the models that Rob mentioned is they're new and unproven. So if you do the super compounder thing, you end up in the companies that LPs have heard about from the other big funds that they've read about in the news and whether you own, you know, 1 basis point in those companies or whatever, you're, you're on the cap table and the things that you're in feel of the moment. If you have lots of other great companies that are maybe doing well on the business metrics, You actually need limited partners who have the energy, time, and focus to go deep to get to understand those companies. And if you're one person responsible for all privates, maybe that's too much to ask of that individual.
VCs Only Fund Trillion Dollar Ideas Now | Funded Teams With No Plan | How to Be Legible to Capital
