This Time is Different

Of these companies that become well financed we only need 15–25% of those to pan out to return 2–3x the fund. But this is all driven on the assumption that we didn’t write a $20 million check out of the gate, that we didn’t pay a $100 million pre-money valuation and that we took a meaningful ownership stake by making a very early bet on founders an... See more

None of this bodes well for many of the new VC entrants who have suddenly become enamored by the capital return potential of science. We have a view that real advances in science are relatively rare, that they are hard to produce, and they tend to be signaled by clear research evidence years if not decades in advance. Venture capital is not a fit f... See more

One thing that seems to have been forgotten over the past few years: venture capital isn’t a fit for every company. It’s not a fit for *most* companies. Venture is structurally built for the moonshots. The asset class is predicated on the power law, on high loss ratios, on what… Show more