Einar Vollset

And then I was coming around to fundraising again. I was like, okay, let's look at this. And actually, it's 8%.

And then I was coming around to fundraising again. I was like, okay, let's look at this. And actually, it's 8%.

Exactly. And so, so they just, they just, they just haven't done that. Like they just haven't raised, haven't raised any money. And actually that's sort of relates back to like how the tiny see different. And it's sort of like, well, I think people maybe don't understand. It's like how to venture measure performance on the way, because the issue with a venture fund is like, well, good and bad.

Exactly. And so, so they just, they just, they just haven't done that. Like they just haven't raised, haven't raised any money. And actually that's sort of relates back to like how the tiny see different. And it's sort of like, well, I think people maybe don't understand. It's like how to venture measure performance on the way, because the issue with a venture fund is like, well, good and bad.

You don't know if we're any good for at least 10 years. So if you're a charlatan, you can kind of keep going for 10 years and say, oh, I'll probably be right in a couple of years here. But like, I think it's understanding, like, how does most VCs, like, how does that make our life hard? Like, why is it a problem for a venture fund that only 8% of your companies have raised further funding?

You don't know if we're any good for at least 10 years. So if you're a charlatan, you can kind of keep going for 10 years and say, oh, I'll probably be right in a couple of years here. But like, I think it's understanding, like, how does most VCs, like, how does that make our life hard? Like, why is it a problem for a venture fund that only 8% of your companies have raised further funding?

And the answer is, as traditional venture fund, it'd be a failure if only 8% of your companies raised money.

And the answer is, as traditional venture fund, it'd be a failure if only 8% of your companies raised money.

And the reason for that is the way that venture investments work is that you as an investor, when you come along or GP, like a VC, basically, you come along and you're basically every quarter or so you send an update to your investors, your LPs, basically, that says this is what my portfolio is worth. And the way that you do that, obviously, they're not publicly traded.

And the reason for that is the way that venture investments work is that you as an investor, when you come along or GP, like a VC, basically, you come along and you're basically every quarter or so you send an update to your investors, your LPs, basically, that says this is what my portfolio is worth. And the way that you do that, obviously, they're not publicly traded.

And so what you're doing is you're basically saying doing two things. You either keep the market the same if they're just nothing material has changed, i.e. they haven't got out of business or they haven't raised money. Or if they raise money, then you market up to this new valuation.

And so what you're doing is you're basically saying doing two things. You either keep the market the same if they're just nothing material has changed, i.e. they haven't got out of business or they haven't raised money. Or if they raise money, then you market up to this new valuation.

And because of the length of these funds, most of the time, like a successful VC can raise several funds without returning any money at all. You know, it could just be like, hey, I'm raising fund number three and like look at my performance on my fund one and my fund two is up, you know, 3x or whatever, 2x, 5x. And it's all based on markups.

And because of the length of these funds, most of the time, like a successful VC can raise several funds without returning any money at all. You know, it could just be like, hey, I'm raising fund number three and like look at my performance on my fund one and my fund two is up, you know, 3x or whatever, 2x, 5x. And it's all based on markups.

It's all based on like how successful are you, are your portfolio and raising subsequent higher, you know, raise more money at higher valuations. That's to a large degree what success is like in VC. Like if you can have a fund that, you know, this is probably why YSE is such a great business. They, you know, they invest at one point, whatever they do.

It's all based on like how successful are you, are your portfolio and raising subsequent higher, you know, raise more money at higher valuations. That's to a large degree what success is like in VC. Like if you can have a fund that, you know, this is probably why YSE is such a great business. They, you know, they invest at one point, whatever they do.

And then, you know, it's like the standard valuation markup three months later, a demo day is like 25 million. Well, that's an enormous markup straight there. It blows everyone else out of the water. They capture a lot of that value to be perfectly honest. And so what do we do? Well, so we have to come up with something different, you know, which is always kind of challenging. And I think like,

And then, you know, it's like the standard valuation markup three months later, a demo day is like 25 million. Well, that's an enormous markup straight there. It blows everyone else out of the water. They capture a lot of that value to be perfectly honest. And so what do we do? Well, so we have to come up with something different, you know, which is always kind of challenging. And I think like,

The difference for us is like what we're trying to do is to say, look, these companies, the successful companies don't really need to raise any more money after this because they're so capital efficient. So how do we capture the fact that like the successful companies don't raise any more money? So there's no automatic markups.

The difference for us is like what we're trying to do is to say, look, these companies, the successful companies don't really need to raise any more money after this because they're so capital efficient. So how do we capture the fact that like the successful companies don't raise any more money? So there's no automatic markups.