At least for large LPs, venture remains an attractive asset class because they do have access to the top quantile funds which can deliver a 50x return in exchange for locking up a few percent of their AUM for 10-15 years.
I'd say a safer bet is there's downward pressure on fees leading to smaller firms, especially for new managers.
Fully agree on early-stage venture. I think we’re going to see larger and more frequent seed/series A investments due to the high risk-reward, but it’s going to be the capital-efficient ones that really survive, since the growth stage investments are going to be few and far between, and likely focused on the aforementioned capital-efficient companies that are less risky investments
At least for large LPs, venture remains an attractive asset class because they do have access to the top quantile funds which can deliver a 50x return in exchange for locking up a few percent of their AUM for 10-15 years.
I'd say a safer bet is there's downward pressure on fees leading to smaller firms, especially for new managers.
Fully agree on early-stage venture. I think we’re going to see larger and more frequent seed/series A investments due to the high risk-reward, but it’s going to be the capital-efficient ones that really survive, since the growth stage investments are going to be few and far between, and likely focused on the aforementioned capital-efficient companies that are less risky investments