20VC: USV's Andy Weissman on The Future of The VC Industry, Why USV Does Not Vote On Investment Decisions & Why VCs Should Be Invisible

Venture capital operates as a craft defined by process rather than individual foresight, requiring investors to navigate extreme uncertainty while managing risk capital. Andy Weissman, partner at Union Square Ventures, emphasizes that successful investing relies on a collaborative, thesis-driven framework that allows for occasional errors while maintaining long-term conviction. The discussion highlights the importance of disciplined reserve allocation and the strategic recycling of cash to maximize returns for limited partners. Furthermore, the emergence of decentralized financing mechanisms like ICOs challenges traditional venture models, prompting a reevaluation of how capital is deployed and the role of human intervention in early-stage funding. By prioritizing a consistent, consensus-based approach, firms can better manage the inherent randomness of the market while remaining open to evolving technological and financial paradigms.