Investor Stories 352: Disruptive Forces (Jensen, Edelson, Tunguz)

Investor Stories 352: Disruptive Forces (Jensen, Edelson, Tunguz)


On this special segment of The Full Ratchet, the following Investors are featured:

  • Larsen Jensen
  • Alex Edelson
  • Tomasz Tunguz

We asked guests to discuss the factor that could cause the most disruption to the industry going forward and how that will change the next decade of venture.

The hosts of The Full Ratchet are Nick Moran and Nate Pierotti of New Stack Ventures, a venture capital firm committed to investing in founders outside of the Bay Area.

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Transcribed with AI:

0:18
Welcome back to TFR on today’s special segment, we asked guests to discuss the factor that could cause the most disruption to the industry going forward, and how that will change the next decade of venture. Here’s the segment called disruptive forces.

0:38
On today’s special segment, we have Larson Jensen of harpoon ventures, Larsen, what factor could cause the most disruption to the VC industry? And how will that make the next 10 years of VC look different than the last time

0:50
the amount of capital going into it, we’re already seeing the bifurcation occur, we’re seeing the large scale mega funds the multistage funds that have our single stop shop for any stage of venture investment in any vertical, you’re seeing the Walmart slash Amazon effect on one side. And on the other side, you’re seeing the sector specialist, or some form of a subject matter expert. That is more along the lines of a Gucci a Tiffany a bespoke brand that’s known for one thing, and one thing only. I think that bifurcation is certainly going to continue. I hear it from LPs. I hear it from other GPS, is that bifurcation occurring? I think the no man’s land is the Sears, the undifferentiated middle tier venture firms that are sort of series A B generalists that really haven’t specialised, but they haven’t gone up the capital stack. I think that’s a really challenging place to be. And I imagine those folks are going to have to make a decision, what do we become? Because that middle ground I think is going to be a little bit of a no man’s land.

2:06
On today’s special segment, we have Alex Edelson of slipstream. Alex, what factor could cause the most disruption to the VC industry? And how will that make the next 10 years look different than the last? Yeah,

2:18
I mean, something I’m constantly thinking about is like, so much capital, in venture so many VCs, it’s just very competitive now. And I think you could see, like, you know, I think there’s an argument to made, that it is increasingly difficult to be a generalist fund, and that, you know, you will constantly need a very clear reason why like you will be able to source and when allocations are the best founders.

2:48
On today’s special segment, we have Tomash, Tang goos of theory, Tom, what factor could cause the most disruption to the VC industry? And how will that make the next 10 years of VC look different than the last one?

2:59
I think value and index investing in venture is a real thing. Explain. So in the public markets, something like 60 to 65% of all stocks and transactions are passive. People just buy funds and they want exposure, the asset class, they want the performance of the underlying beta. And I think you might start to see a look at Vanguard working with harbour vest, which is a big fund to funds. privates are becoming more and more important in people’s portfolios. A big driver of that is the number of publicly traded companies is not huge. Another big driver of that is startups need to become larger and larger to become public. And so as P E P bought 10% 12% of publicly traded software companies in the last 18 months. So there’s a winnowing of the total investable opportunities in the public markets, there’s a bigger demand for privates. And so as a result, you may see index funds of these asset classes, particularly venture capital and private equity start to become more and more important, where people just want to buy just a broad cross section of venture capital as an asset class. And that might change the venture industry quite a bit. It will bring in Majan, all the investor retirement dollars that could come into the asset class through like IRAs or 401, K’s or, or others, and that could really just the way that it’s distorted the public markets, it could really distort venture

4:34
that will conclude this instalment of investor stories. If you’re enjoying the programme and would like to see it continue. Take a moment and leave a five star review in iTunes. Okay, that will wrap things up for today. Until next time, over prepare, choose carefully and invest confidently thanks for joining me