Uncapped #8 | Josh Kopelman from First Round Capital

Josh Kopelman and Jack Altman discuss the current state of venture capital, highlighting the increase in the number of funds and active check writers, as well as the shift in fund sizes and the implications for LPs. Kopelman introduces the "Venture Arrogance Score" to evaluate a fund's business model, emphasizing the importance of capturing a significant percentage of total venture value created. They explore the challenges of return compression, the increasing professionalization of venture, and the impact of larger funds on the ecosystem. The conversation touches on the importance of relevancy and returns for venture firms, the hyper-concentration of returns in the industry, and the need to hold on during periods of irrational exuberance. They also discuss the impact of software on various industries, the assumptions made with AI investments, and the importance of finding the right founders and problems to solve. Finally, they delve into First Round's unique approach, including the role of Brett Burson and the firm's commitment to iteration and long-term thinking.