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this episode is presented by unit

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unit of the leading banking as

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a service platform that makes it simple to

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and lending into your product and just

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weeks

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hello and welcome back to equity

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apart just about the business of start ups were be

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unpacked the numbers and new ones behind the

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headlines my name is alex will home and i'm subbing

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in for natasha today and this is our wins

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they show where we knew stone to a single topics

0:36

think about a question and unpack the rest

0:39

today we are asking the how is the economic

0:41

downturn and start slow down impacting

0:43

the seas and the fun to finance

0:45

venture capital funds i'm joined today

0:47

by becasue tech to get into this becca this

0:50

is essentially a christmas for us because

0:52

we just ramble on about lt isn't feces

0:54

and finally are nerd moment has

0:56

come

0:57

yeah we've been winning

0:58

for a long time just if you don't

1:01

like this particular episode of equity it's tough because

1:03

this is the stuff we talk about on slot and we are bringing

1:05

it to you today not life perceived as

1:07

close as we can get and a small know natasha

1:09

is just out with a small illness she was that

1:11

she is not giving up the wins the show to me i

1:13

just tried to pretend to be her journey interrupt she'll

1:15

be back asap now better

1:17

with that minds were talking about the

1:20

economic downturn and start up for down which is kind

1:22

of the same thing but i want to set the stage

1:24

here by discussing starts today because

1:26

i'm a little confused about where the market

1:28

is on one hand we've had people

1:31

you know ringing the bell of doom that everyone

1:33

should conserve cash and cut spending all that business

1:35

and the same time to venture capital flows

1:38

into startups seems to be holding up

1:40

reasonably well so my vibe

1:42

is that things aren't as bad as people so they

1:44

are for startups but i'm curious to see grunberg

1:47

here where you sit

1:48

yeah definitely i think the vive i'm getting

1:50

is that it's just really divided

1:52

mercury now i think some people

1:55

are doing much better than maybe they would have saved

1:57

three years ago in a more sibling smoking others

1:59

just not doing as well

2:01

okay expected to the sears pressure

2:03

coming off of last year but i

2:05

personally think this month maybe like the most

2:08

then let me test of how things

2:10

are going so many people like will

2:12

these issues are investing hear the species

2:14

or nothing there but they well

2:16

com like the magical dublin of

2:18

labor day so

2:19

no already on visit were say that

2:21

multiple pushed out people talking that

2:23

started seeing like cautiously bring the

2:25

to back in the water for fundraising and

2:27

such humid paused the summer's day for getting

2:30

much assumptions i think you treated

2:32

i think will be the most telling us how things are going

2:34

and to the routes what at the end of the timbers

2:36

all the two three did it up you will eventually see

2:39

in early october will be inclusive

2:41

of this period of time to sort of

2:43

that word delaine do you think

2:45

that that was the right move to think that venture

2:47

capital activity will actually picked back up

2:50

or is that more of a canard those performance

2:52

you know that's really hard to tell because

2:54

i'm so for some the shuttered you

2:56

will work out but i have a really hard time

2:58

believing that the seeds were really

3:00

passing on good companies the summer

3:02

just sort of principle of not investing so

3:05

well i think some who maybe chose

3:07

not to raise but didn't actually guam's

3:09

fly before making that decision they may

3:12

have perfect success now and maybe

3:14

would have over the summer they had so i think

3:17

i don't know i know to sell it buy that things

3:19

will just be like a lot

3:21

laughter and a lot mercy just because the boy did

3:23

yeah and use it is gonna a half and

3:25

have nots tuition the company's other raising

3:27

other not can or cannot have we

3:29

seen

3:30

the started that aren't going to be able to raise

3:33

deal with that struggle or

3:35

pain yet or is that kind

3:37

of still to com waiter in the year when cash

3:39

supplies dwindle even further i'm sort

3:41

of figure out like have you seen the bad news or

3:43

is the bad news for startups that are going to struggle

3:45

the residents still coming i think it's

3:47

upcoming a nice talking with

3:50

a d c last week as he was

3:52

telling me about it

3:53

lyric depriving just how many unicorn companies

3:55

are kind of hanging on a threat

3:57

right now and he's like that so not apparent

3:59

for know

3:59

might the back inside of the conversation

4:02

so my feeling on that

4:04

there's gonna be one day

4:07

maybe not even day but there's gonna be some sort

4:09

of notable announcement of a copy that just like

4:11

we just can't raise any more where we

4:13

have to sit down or in some sort of fire

4:15

sale and i think the dominance of all pretty quickly

4:17

from there is just because the company

4:19

in question you're talking about this theoretical feel

4:22

your flame else to document a unicorn so

4:24

company worth a billion dollars or more on paper

4:26

so we actually might have out there some

4:28

road to the wounded companies that look like

4:30

so horses but are in effect essentially

4:33

heading for the glue factory

4:34

so they and i think some of it

4:36

is true from last year i do

4:38

the runway an extension financing as and such

4:40

become

4:41

the same throughout this whole bunch of funding

4:43

pullback but while some of the start of that reads

4:45

last year some of the larger companies and

4:47

the unicorns are overvalued

4:50

that doesn't change the fact that they did raise a ton

4:52

of money so it's like wow

4:55

some of them may appear better on people

4:57

for that reason like oh maybe they're valuation

4:59

is too high but they're still like running

5:01

business as usual some of the

5:03

probably not running business as usual they just

5:05

said actually in not frenzy last

5:07

year raise a pretty good work has to

5:09

keep them going for at least a while yet we have

5:11

talked about communism raising twice

5:13

and twelve months three times and twelve months

5:16

and if they spent all that money by

5:18

now i have to say works

5:20

and also what were they thinking but there's a lot of companies

5:22

also the do have a lotta cash and i would say even

5:25

some companies that are doing less well than others

5:27

probably are still overcapitalized just

5:29

predicated on how easy it was lost your

5:31

to raise city or hundred million in a single

5:33

go absolutely i know the least one company

5:35

i covered last year that raise right

5:38

before the and reporting twenty and and bruce

5:40

was and twenty twenty

5:41

why i remember asking the ceo of

5:43

they've spent all of the money in the past reason

5:46

she said that they haven't even touched it

5:48

yet and then they went on and raised again so i mean that

5:50

money as soon as

5:51

the bank so i mean yeah generate

5:53

in what is it like you know zero point one percent

5:55

interest or whatever rate they can guess it

5:57

reminds a little bit of when i think it was air bnb

6:00

was it actually running the get in house hedge fund

6:02

with all their surplus gas because bad

6:04

do something with all the money they had that they weren't using

6:06

smuggler i don't think that's particularly common

6:09

but things have changed and now

6:11

the question is what is going on

6:13

from the venture perspective and a datapoint

6:15

that you and i have talked about and i think that was

6:17

surprising was just the sheer amount of money that

6:19

he sees raised for their own funds

6:22

in the first half of this year he was something

6:24

along the order but one hundred and twenty billion dollars

6:26

for recall correctly a very high very strong

6:28

number

6:29

yeah so it's interesting because as

6:31

chatting with pittsburgh last week and they're

6:33

saying that you can tell if you like when you look

6:35

at the first half your total yes

6:37

it's crazy high and

6:38

the or for like a really strong to an overall

6:41

a breaking it down quarter of a quarter while the

6:43

corner haven't been drastically dropping off

6:45

they are heading in that direction

6:47

the fight he was seventy something

6:49

with your wine is in the forties for

6:51

you to suppress sizable drop off

6:53

but in combination is still obviously creates

6:55

like a really strong number for the first half of

6:57

the year

6:58

to they said was tracking

7:00

so far to be somewhere in the mid twenties

7:02

market change by the end of

7:05

this month obviously i've wanted people push

7:07

to close friends right for the end of the corner so i'm sure

7:09

that will bump up a little birth sign with

7:11

so pretty big drop off but

7:13

still puts the are on track to either be the best

7:16

on record or second best

7:18

they're essentially seventy billion to one

7:20

fifty million sq to twenty

7:22

five thirty billion que three

7:25

and i would put us a summer neighborhood of five

7:27

dollars i think by the end of year is

7:29

that decline continues so things

7:32

have to stabilize some point but

7:34

a downward trend ah man i just

7:36

i wonder this a similar effect or non some

7:38

sort of raise bunch of money still have

7:40

a bunch of money regardless of the macro conditions

7:43

some these he's raised a bunch of money early this year

7:45

i wonder if that essentially sets up a

7:47

strong venture capital

7:49

cast backlog is he will investment backlog

7:52

even if we do see relatively lackluster

7:54

to three to four venture capital fund

7:57

raisers murder

7:58

and that's what makes this such an interest

7:59

dynamic especially because we've

8:02

been having the switch cash and some not

8:04

investing of same pace are looking a kind of do

8:07

more concentrated

8:08

this and it really does set up this weird

8:10

dynamic and i can definitely say

8:12

from talking with founders for various reasons

8:14

over the summer thunders definitely

8:16

have thoughts opinions and feelings about

8:19

being top know because of market conditions

8:21

by a fun that was just able to raise a ton of

8:23

money

8:24

the market conditions right do too

8:26

favorable market conditions he would presume

8:28

you don't raise and alzheimer's disease and of things

8:30

are paragraphs also you

8:32

know venture returns have been pretty good the

8:34

last couple years and another nuance between

8:37

paper returns and hard cash returns

8:39

but based on what you've told me it seems that

8:41

venture capital firms are done rather well

8:43

maybe we shouldn't be too surprised that even

8:45

with a deteriorating macro economic

8:48

picture this is are going to be able to set a

8:50

all time record in fundraising for themselves this year

8:53

despite declines as the calendar kind of rose

8:55

want to do especially when looking at

8:57

funds i get backing from institutional investors

8:59

like pension funds i mean those

9:02

types of investors are across so many different

9:04

asset classes and even essential was

9:06

to knock off like a significant percentage on

9:08

his return it would still outperformed

9:10

why a bit of the as

9:12

the classes that pension funds are investing

9:15

in which isn't to say that would necessarily

9:17

be a good thing but is that going to be up this going

9:19

to cause i'm specifically pull back from

9:21

industry it's like know what

9:23

asset class are you gonna now pile into

9:25

that's gonna perform better it's like dot asa

9:27

ca still doesn't exist brought know i'm in the

9:30

stock markets taking you know sea sponges

9:32

and if you look at my bond index fund the lab

9:34

and my snow the gun with roughly the

9:36

worst thing of all time so i don't know where you would

9:38

possibly put capital apart from bitter capital funds

9:40

to do you think that the slowdown in vc fund

9:43

raising never seen this year is driven

9:45

by people that were trying to raise

9:47

their fun before things got worse and so they kind of front

9:49

loaded the year or is it more like

9:51

people are just less interested today giving

9:53

these his money even as returns were pretty good

9:56

these pension funds these them in offices and so forth

9:58

i think else lot to do at the peace

9:59

the market last year to suffers moving

10:02

so fast on the vc side l pizza

10:04

increase their faces wow

10:06

so coming into this year worried that pressures

10:09

just not on anymore is talking to a

10:11

lawyer who focuses on gp fund raising

10:13

and ventured just last week and she was saying

10:15

that in her mind fundraising still

10:17

seems pretty healthy but it is absolutely

10:20

taking funds longer to get to that first

10:22

close but she was saying the good indicator

10:25

of how healthy fund raising his is

10:27

the terms in the fund raising interest

10:30

she was like the

10:31

have not shifted to like the out

10:33

his favorite like tp stuff i saw the

10:35

upper hand

10:36

it's hard funding terms or a now

10:38

in these gp officer

10:39

so she was like even have suffered slowing

10:41

down there is a place still enough appetite from

10:44

lp said she pees to gonna get that upper hand okay

10:46

so we dot a lot about sound or friendliness

10:48

when it comes to the founder of interpersonal relationship

10:51

and a founder from a term she would include with

10:53

no rational to include know dilution protection

10:55

for dusters and put essentially price keep a

10:57

lot of the power in the house saunders perhaps even given solder

10:59

more votes etc all that's kind of understood

11:02

talked about the show for years a dot is really

11:04

now when it comes to terms between an l

11:06

p and a v c i'm thinking about

11:08

things like how much can a charge in

11:11

our management fees and what cut a promise

11:13

to the gets you know the to and twenty model as

11:15

in a rule of thumb for weight and law now

11:17

adding some about this but what else fits

11:19

into that l pvc relationship

11:22

that makes something pc friendly

11:24

as opposed to lp from was i think

11:26

those two are probably the main drivers for sure

11:28

and looking at things like carry in front of

11:30

how overdraft of breaks down

11:32

i don't know enough about the capital

11:35

cost structure to note that would have any impact

11:37

fair but i'm sure how

11:39

, were pop more freedom or time

11:41

over capital cause i did see that

11:44

something that could come into play of the funniest

11:46

moment us more dicey but that's

11:49

clearly and regulation clearly and have any dot

11:51

on on that specifically just for folks

11:53

who are sitting with us and we're tracking

11:55

so far and in got to capital calls and are confused

11:58

what is a capital call

11:59

in the day one eight hundred number or something

12:02

different

12:02

capital quality where the

12:04

a gps what and to use

12:06

okay capital to invest in

12:08

a specific production or a dealer

12:11

anything

12:11

the like they have to com and lpt

12:13

the kind of cafe okay to protect capital

12:16

port of pacific investments

12:18

usually someplace that is pretty will keep

12:20

the sun appears

12:22

a back and for areas and some advice

12:24

causes or canvases or geography space

12:27

on sort of internal structures

12:29

if you got until i government pensions and

12:31

areas like canada and the uk

12:33

so capital costs are kind of a

12:34

a for lps that sort of sign off on

12:37

their capital of being used for the specific

12:39

investment through the gps on structure

12:41

and this is because when an lp commit to say

12:43

fifty million dollars to a one billion dollar fund they

12:45

don't run a check for fifty million and then

12:47

send it in they essentially provide a

12:50

pr deal texas my understanding especially

12:52

the capital is called from them for

12:54

a particular transaction and normally

12:57

that goes off without a hitch the vc has the right to kind

12:59

of call the capital but with different terms

13:01

maybe there is more overview oversight

13:03

and will you might call babysitting baxi

13:05

driving monday morning quarterbacking

13:07

we've a lot of phrases in english for what's going on here but

13:10

that is not going to be welcome on the vc said

13:12

because who the hell wants an advisory board

13:14

yeah know you'll notice the language a lot

13:16

of lp documents to very few

13:18

will say they invested in a certain manager they'll say

13:21

that manager yup and i've

13:23

noticed the distinction right there now one thing you

13:25

read about recently that i thought was very interesting was

13:27

about venture capital markdowns because some

13:30

of the the companies that did raise money last

13:32

year raised it at raised price that we now

13:34

think may have been excessive and there's been examples

13:36

of is from client on the private sides

13:38

to sides mean affirm on the public side

13:40

or you know zoom on the public side

13:42

are really are bunch of companies that were high flyers that

13:45

i've seen evaluations declined for one reason or the other

13:47

and vcs has to decide when to kind

13:49

of make that appearance on their

13:51

accountant of their investments so why

13:53

are some vichy is waiting and what impact does

13:55

that have on that have c lp relationship

13:58

the what i gathered for the main reason

13:59

why some feces may be waiting

14:02

to markdown the for four years

14:04

i'm optimistic side some may

14:06

actually think that media

14:08

attention is negative around x y z per

14:10

for your company or concern was

14:13

he sees mark to market the fun at

14:15

the end of each year they may think

14:17

what we don't know what's gonna happen if you

14:19

for especially fucking of the conversation

14:21

happened a few months ago like others have to your life

14:23

maybe that won't lock overvalued

14:26

or maybe if i marked down now that would

14:28

end up being to down from originally

14:31

he would look like

14:32

the year so dot sort

14:34

of approach is interesting and

14:37

maybe there is some validity for my some firms

14:39

for that for sure i know i

14:41

when i heard from an l p was sought

14:43

some early stage portfolios

14:46

they just really need to do it might maybe

14:48

you have one company and the portfolio that

14:50

may be on paper airflow

14:52

off now but is it worth it to

14:54

go to the whole idea when your company

14:57

you're perfectly are still so far away from

14:59

the public market it's like thought might

15:01

not and are being a super fruitful exercise

15:04

she did say

15:04

it's always good for [unk] gps to get used

15:06

during this kind of stuff and like have any kind of open

15:08

opie communication

15:09

yeah some friends may not be doing it because

15:12

they may be stored and during a quite a

15:14

internal

15:15

review and realizing that like say maybe just

15:17

don't have to yet at least but

15:20

on the pessimistic side table

15:22

some species are awaiting doing

15:24

it because

15:24

there are known for hiding something because

15:27

you really i mean everyone knows when

15:29

a market has had a great know

15:30

the they think probably would not actually do secret

15:32

to they're all teams but some

15:35

are trying to avoid market down their portfolio

15:37

especially if say the were

15:39

a manager trying responses

15:41

what do gusto uber shopify,

15:43

at angellist all have in common they

15:45

all to build banking into their product

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to accelerate growth, reduce customer

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acquisition cost and create game revenue

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streams unit is the market

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leader in banking as as combining

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multiple men partners with a developer friendly

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p i to empower companies of all sizes

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to launch a town cards payments

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on monday in just a few it the

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unit a trusted by leading brands such

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as angel as high beams and voice to go

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and restart to hear more about

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how unit and they both companies like yours

16:15

to build baking visit unit dog

16:17

cove such equity podcast

16:25

yeah yeah you probably want to

16:27

have those high multiples are t v p

16:29

d pq nine is a point

16:31

seven x versus four point two i mean you have

16:33

a lot better to matter how real or not the number

16:35

is right i mean if this portfolio represents

16:38

your only track record at the moment

16:40

you deathly are not gonna be the quickest percentages

16:42

let's make it look worse processor

16:45

thinking about fund raising her sort of having those conversations

16:48

especially as an emerging manager

16:50

the improvement the t v

16:52

c funds and that's what i spoke to was like i'm

16:54

sure and races done and i'm sure

16:56

sequoias donate like i'm sure the firms

16:58

that are so big it would be laughable not

17:01

you probably the have a

17:03

similar the middle till firms that maybe do

17:05

have unicorns in a portfolio

17:06

the or it necessarily the fundraising

17:09

multiple

17:09

in dollar vehicles each time they go out

17:12

there hasn't been see there is i don't

17:14

know if they think there is a recent really

17:16

justifying it's kind of like elephant

17:19

in the room sounds like so

17:21

this so this really interesting thing because we have

17:23

seen for example center companies getting

17:26

replaced in the public markets like paypal block

17:28

i mentioned your from earlier not to pick on them for any particular

17:30

reason but you've seen this happen across a lot of companies

17:32

so the market that you might marked to

17:35

is very clearly changed but

17:37

when it comes to some sectors like the

17:39

three most of the companies are not

17:41

yet public and so we don't have a basket

17:43

of floating from speaking to attract the value

17:46

of so if you're a crypto fund and you invest

17:48

in series a and b web three companies

17:51

with the metaverse focus on i dunno

17:53

digital land or whatever what the hell are you

17:55

comps how do you mark to market

17:57

in a nascent field like that i wonder

18:00

if we're seeing not more honesty

18:02

per se in certain areas but maybe the more

18:04

traditional and a later stage your portfolio

18:06

is the easier it is to be honest

18:09

vs earlier stage more esoteric

18:11

companies having fewer marks that

18:13

he had even tell if you're right down to

18:16

point out facilities newer industries

18:18

the only thing to counter with that point is

18:20

that because all these species generally

18:22

do this or at once a year if they start

18:25

investing comedies with three members

18:27

tech companies last year they would have already gone

18:29

through and on it on them for a mark to market so

18:32

i don't know how those accounting

18:34

firms breakdown

18:35

volume of companies by i

18:38

would imagine because so much of

18:40

that momentum started last year that

18:42

these accounting

18:42

in front of would actually be able to kind of work through that

18:45

here's a question that i have is the market is entirely

18:47

on the part of the time and the only data points you have

18:49

to generate evaluations to uses comps

18:52

come from other v c's do you essentially

18:54

ended up mark to marketing incorrectly

18:56

based on having essentially no good

18:59

comparable i dunno i love comps from the public

19:01

markets because they're so illustrative but where

19:03

the kind of overall market headed that

19:05

is just so while to me if i mean what do you look

19:07

at the board ape floor price

19:10

for the nf t markets actual

19:12

values i mean i don't even know but injuries and

19:14

is putting money into a bunch of these companies

19:16

at you know twenty to fifty million dollars

19:19

per day they're basically of based on something

19:21

i'm just curious what it is vs

19:23

you know in the old days success company you can just matricide

19:26

stuff the opposite of that know that

19:28

such a good point to now i am

19:30

going to be obsessed with that idea and i now

19:32

want to know how they do all this mark

19:34

to market for allergies really like you

19:37

mentioned still on the private side companies

19:39

and sectors are now as i want more wrinkles

19:41

of this the business cycle goes up and down as

19:43

you know everyone knows and into traditional

19:46

economy which is a weird way of saying the main

19:48

economy business cycles have a certain length

19:50

to them i dunno caught five ten fifteen years depending

19:52

on where we are in the world the crypto business

19:54

cycles are compressed dramatically and they have

19:57

crypto summers and winters much more frequently than

19:59

the business cycle turn so

20:02

what's to stop you from the same we're not going to mark anything

20:04

until decrypt a winter is over and things looked

20:06

better for us because we think we take a long

20:08

term perspective on this part

20:10

of the economy and so we're just not

20:13

going to deal with your from fluctuations in the diversion sides

20:15

because they think they're noise couple people

20:17

are believers for serve and quite frankly

20:20

even though i mean i sort of lead into

20:22

that mindset fully

20:25

that's a pretty good argument on their behalf

20:27

of same why would we marked down or for full in

20:29

the screws up and down x y and z so

20:31

definitely not an interesting part of the conversation

20:33

but i mean if you look at a fun the has say

20:36

authentic unicorn that's laid off twenty five

20:38

percent of it's staff and there

20:39

now can be so via the same

20:41

like

20:41

i mean no one really believes that no one no

20:43

one believes that so what are some point three billion dollars

20:46

for having one doing a when sorry frame

20:48

or it's are on the up beside a couple of thing so

20:51

there's the possibility that people

20:53

get more conservative and pull back from

20:55

exotics which is the fraction of a

20:57

capital pool speed a pension fund your family

20:59

office that they can devote to the venture capital

21:01

space you wrote about how there's recommendations

21:04

against funds doing this and i'm just curious

21:06

driving factors and possible risks

21:09

of reducing these exposure amongst these large

21:11

russian citizens

21:12

boy did good something really interesting about

21:14

the lp side that sometimes gets lost

21:17

in similar positions with the seasons

21:20

is the fact that oh this

21:22

year the vintage isn't as good because of market

21:24

conditions

21:25

hope you structure their entire portfolio

21:27

around each other class eventually

21:29

having like about integer to like

21:32

that as a whole structure of the piecing plan

21:34

and that's why they go through all of these

21:36

things because they get them

21:38

through multiple market cycles lot of these are piece of

21:40

in investing for say seventy five

21:42

past year old not all of them on the pension

21:45

funds have been investing friendly sixty

21:47

seventy five years they're not expecting

21:49

censure to continue to go up into

21:52

the rate every year what's interesting

21:54

though is looking at why they would

21:56

necessarily sub invest

21:57

the because of it i think it's instead

21:59

point i came up away the cause they had it

22:01

that what's happening right now does not

22:03

impact the money they

22:05

the putting a

22:06

how he only impacts the money

22:08

they've already put in mainly

22:10

so it's like if you sit out now because

22:13

of what's happening to the money that's

22:15

already in

22:16

you're kind of running in circles there is you're not

22:18

putting in more money to sexually have

22:20

a better

22:20

com as things tend to improve

22:23

or the whole all buy low sell high

22:25

you're literally just spacing out for the fact that

22:27

your current money isn't going to do as

22:30

well today is so work

22:32

i know

22:34

the money and potentially do better it's like when

22:36

i heard at explaining that way i thought

22:38

i was just about the way of putting our fact it's much

22:40

more of an impact on the money that thirty and i suppose

22:43

the money you met today and is

22:45

are sort of like i'm some rory

22:47

list factor here because i think of the world

22:49

of buying for hours if you're are

22:51

on the multiple buyers list they have any release

22:53

a new cars they must have a recent special

22:55

edition blob of of a lot as lead to turn

22:57

to three of them if you have always

22:59

thought the news for are you stay at times less

23:01

but if you skip one drop a lot

23:04

and i wonder if some lps are worried that if they

23:07

don't commit to the next sequoia fund

23:09

or whatever the lose their spot essentially

23:11

on the sequoia lp captain

23:14

roof enough

23:14

i [unk] validity to that because

23:16

not generally is what happens i know

23:18

we weren't talking about this particular but i think

23:20

it ties in i know from talking with fund

23:23

of funds about new fund of funds

23:25

that's something they say a lot where they're like

23:27

well current fund of funds do really well

23:29

because they've had these fifteen year the separate

23:32

only sake fun flagship says

23:34

of your to start as fund upon today short

23:36

course i'm not gonna lie and say you can't make a great

23:38

tool and good good a merchant manager strategies

23:40

but

23:41

be able to get into those large

23:43

fun so it's really hard

23:45

the outside and i think it does from

23:47

the ceiling i've gotten is like if you step on the

23:49

outside your stay on the outside because

23:52

someone else will secure spot never they got

23:54

a raise that next fun

23:56

why do they reach out to you have everyone else is already

23:58

willing to reconnect

23:59

the

23:59

quite frankly kind of makes sense to me when

24:02

raises hard and

24:03

i'm consuming if you know oh well

24:06

x y a pension fund say may come

24:08

in on this fun series but i know

24:10

a b c bunch of and will definitely come in like

24:13

they opted to time management on there as well

24:15

you know like the overall tenor

24:18

of second on startups and then

24:20

the seas and then l these is that

24:22

while embark conditions are seizing

24:25

the game is still going to be going

24:28

clear that i've been in there is no real tell

24:30

us rather slow down at any pointing out the money

24:32

cascade from bars pension funds

24:34

and similar all those out the founders

24:36

admittedly gabi slight differences and in hub money

24:39

is still third and where it lands exactly

24:41

but the cascade still happening things are still

24:43

flowing

24:43

absolutely no defined seems like

24:46

the top tier level of the money the like

24:48

the top of the finance their worrying billie

24:51

so i get why startups wearing

24:53

a get my pc funds are worrying but it seems

24:55

like the backing us coming from the top

24:57

is any

24:58

don't need to talk the trickle down economics

25:01

and is that works or not but in the structure

25:03

is that generally is the flow of money saw

25:06

as the people at the top are the least worried

25:08

about that conditions right now on are so line

25:10

a kind of put money in it kind of shows that

25:12

even if this is bad if religious and can't be

25:14

that bad for very long because money

25:17

setbacks then she'd run is still

25:19

a very much coming in so you know

25:21

and she's was a doorknob a new not be

25:24

a lot of his into that sort of data but

25:26

the yields on money are still relatively

25:28

modest compared to the expected returns

25:30

from a basket of venture capital

25:32

fund investments and so to me there's

25:34

too much more attractive

25:37

than anything that you can get other that safer

25:39

and i noticed was been inverse relationship between interest

25:41

rates and more speculative and essence like my god

25:43

going from one to two percent returns

25:45

on safe that's vs shooting for

25:47

a new twenty percent i rr one of her i mean just

25:50

seems to be still suicide by i guess i'm not

25:52

that shocked the there's still this much money

25:54

sloshing it's way towards v sees even

25:56

though last year was nuts and a lot of money

25:58

was misspent

25:59

well yeah and something that i almost

26:02

never really come across going through pension

26:04

documents that that came up on one of the cause i had

26:06

for the out the story was that one

26:08

of the concerns i spoke to said if a friend

26:10

or from they're working with

26:11

merely did much to say decrease

26:13

their enter allocation

26:15

maybe the germany facts

26:17

that about you prefer the now it's over weight

26:19

cause other as a causes have been marked down

26:22

from the other markets they can

26:24

just write a smaller check why

26:26

that's so easy i don't know why that had never occurred

26:28

to me because i'd never see pension funds

26:30

rate smaller chunks if they've invested

26:33

they've invested larger check prior in this a miniature

26:35

by he was saying like that was the advice

26:37

number one for any honestly

26:39

oh i think i need to sort of products to

26:41

little bit easier like okay tp financing

26:43

plan just like knock side know of with each year

26:46

stint keep going into the same funds

26:48

can access the same returns the like mexicans

26:51

air as opposed to the tire fund or

26:53

entire percentage of investing in the from saw

26:55

the our anything like that it's just like makes

26:57

a small the corner cuts yeah

26:59

i want to narrow down to a particular segment

27:01

of the bc most it will quickly or lps as

27:04

excited about backing first time fund

27:07

managers as they have been and by that i mean

27:09

not just as will first time but more

27:11

nascent more early for managers because

27:13

the talking lot about you know calpers and other

27:15

major missing pools major nothing

27:17

sons the country since plants that are us those

27:19

was and sips or like the titanic very slugs

27:22

and rounds but more nimble smaller

27:24

fund managers has been bubbling up

27:27

twice weekly or are they gonna kind of like

27:29

catch the same tail ones that were describing

27:31

or as a distinct enough to

27:33

not touch the center

27:35

yeah so that's really interesting area

27:37

of this because some time with lawyer

27:40

focused on center from fund raising last

27:42

week's you saying that she stuff i notice emerging

27:44

managers are struggling more so

27:47

than were established players

27:49

fire at the same time this is

27:51

hopefully for a story of weird because while but

27:53

her plus a few other people to see said like

27:56

this is actually the bus and for for some for neighbors

27:58

and emerging managers to go out

27:59

for this relationship because

28:02

after last year so many big phones

28:05

if you raise the multibillion dollar fun

28:07

find a close this year and you're sitting

28:09

on your hands yeah you're probably for

28:11

fund raising and a quicker amount of time and

28:13

i would ever imagine but you're not doing

28:15

it this year so it's like this

28:18

is actually the time lp don't have the pressure

28:20

from last year and fundraising is actively

28:22

slowing down so if you want to get their attention

28:24

you want to actually get in front of them into like a meaningful

28:27

conversation that could result in something

28:29

i sorts of for people who said the time

28:32

now to do the best time for percent and managers

28:34

even say maybe they don't get a commitment for some

28:37

students list you know could be good

28:39

for fun to they're saying like this

28:41

just agree to him for him for in in

28:43

there too many jurisdictions start making has connections

28:45

with this piece are usually just too busy

28:48

so as officer cents on managers and other

28:50

kind of relatively new disease we always

28:52

have that the next generation in the absence of very

28:54

well as how the whole idea of tuck once

28:56

i think as a public nuisance and then apply some money

28:58

and sorts of it's nothing further

29:00

to go it is why see do at a week windows

29:03

comes out it'll be wednesday morning and i mean is

29:05

that he will be gearing up to watch a

29:07

to julian companies and

29:09

here's my boss every year and last and

29:11

thousand years we've heard this is complain about why

29:13

see start up prices and yet this time

29:16

i haven't heard in the of that am curious

29:18

if things have calmed down enough on the early stages of

29:20

are going to have the first ever y c demo day

29:22

he would vc do not complain publicly and

29:24

privately about how more starts cost

29:26

i don't know any so interesting

29:28

to think about x you see there's such a

29:31

big lead up to this day especially and

29:33

like the

29:34

if you were very

29:36

though they're to find that have been quiet but other

29:38

thing front is that just because

29:40

all the other stuff happening with why see that

29:42

shit like as more occupying people's

29:44

time and sort of like that's more

29:47

of the talking points

29:48

the throne of companies can i don't know

29:50

i mean early his fundraising is

29:52

starting to decline but

29:54

really not that much so i feel like anyone

29:56

who'd kind of be going and looking to

29:58

invest that one of these them a day

30:00

probably still planning to go and invest

30:02

sylvia many people are hoping the

30:04

prices will be lower and will see sort of

30:06

our neighbors were backlash after of that's not

30:09

the case

30:10

the possible but yeah definitely noticeably

30:12

quieter this year let's summarize

30:15

rich people are still with the money is still flowing

30:17

and sort of slowdown is not as bad as an evil

30:19

thought at least yet but we will course

30:21

come back with que three numbers for venture capital

30:23

fund raisers and sort of result as soon as we had

30:25

them back to thank you very much i'm looking for to work

30:27

with you on wise you stuff the next couple of

30:30

days and former else out there will be on

30:32

twitter spaces here and there in the next couple days

30:34

so equity pot on twitter his your tweet allowed

30:36

to touch your friday morning folks that much