Bill Gurley

It seems like they've raised somewhere between $200 and $300 million each.

And so you roll all that up, it's $300 billion.

NVCA estimates that it's $3 trillion of assets on the books of the LPs.

I did some one-on-one calls with LPs.

They've slowly increased their participation in venture from...

anywhere from 5% to 7% up to 10% to 15%.

And then it can be as big as half of their private equity commitment.

So VC alongside private equity.

Some have private equity a lot bigger, but it's gotten bigger and bigger on their balance sheet.

So it's important.

There's, I think, a lot of questions about this group of companies.

One is, what's their correct value?

A lot of the marks for their last round was set back in 2021.

Yeah, which is when you had a real market peak that second year of COVID.

If you remember, all the tech stocks blew up and Zoom blew up at that moment.

And everyone did really well in that window.

So there's a question as to what they're worth.

The investment world doesn't seem excited about this group of companies, just writ large.

They don't have super high growth rates, and I want to talk about why I think that is.

The thing that most people may not believe, but I guarantee you it's true, no one has an incentive to get to Mark's rank.