How To Make Money in Venture | Josh Kopelman, Co-Founder of First Round Capital

In this interview, Josh Kopelman discusses the current state of venture capital, highlighting the increase in the number of active funds and check writers since 2004, and the implications of fund size changes for Limited Partners (LPs). He introduces the concept of the "Venture Arrogance Score" to evaluate a fund's business model based on its size and ownership percentage, questioning whether large funds can consistently capture a significant portion of total venture value created. The conversation explores the shift towards a Blackstone-like model in venture, focusing on scale over alpha, and the potential risks of lower returns and increased duration. They also discuss the importance of relevancy and returns for venture firms, the hyper-concentration of returns in the industry, and the challenges of holding onto investments during frothy market conditions. Kopelman emphasizes the importance of alignment with founders and the value of a disciplined, long-term approach to venture investing, highlighting First Round's commitment to early-stage ventures and its unique operational structure.