20VC: Why Fund Returners Are Not Enough Anymore | Why Sequoia Had the Best Strategy at the Worst Time | What it Takes to Be Good at Series A and B Today | Benchmark Leads Manus Round: Should US Funds Invest in Chinese AI | The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch | Podwise
20VC: Why Fund Returners Are Not Enough Anymore | Why Sequoia Had the Best Strategy at the Worst Time | What it Takes to Be Good at Series A and B Today | Benchmark Leads Manus Round: Should US Funds Invest in Chinese AI
This episode explores the current state of the venture capital landscape, particularly focusing on the challenges and opportunities presented by the rapid rise of AI. Against the backdrop of a prolonged period of low liquidity and high valuations, the panelists discuss the difficulties in achieving satisfactory returns for Limited Partners (LPs). More significantly, the conversation highlights the contrasting perspectives on investment strategies: some favor focusing on AI, while others advocate for a more diversified approach, emphasizing the importance of differentiated data sets and sustainable business models. For instance, the panelists debate the risks associated with rapidly scaling AI companies, noting the potential for swift growth followed by equally rapid decline. As the discussion pivots to the importance of speed of returns, the panelists delve into the complexities of Internal Rate of Return (IRR) calculations and the role of secondary market transactions in optimizing returns. Ultimately, the episode underscores the inherent uncertainties in the current market, emphasizing the need for careful selection of investments and a long-term perspective, even amidst the excitement surrounding AI. This means for venture capitalists a need for adaptability and a willingness to take calculated risks in a rapidly evolving technological environment.
