Kate Simpson

And look, we talked about before why manager selection is sort of uniquely important in this asset class.

And it comes down to picking those managers that have the ability to identify and lean into those power law companies.

I think it boils down to this new normal that we're in, that we have been in for a number of years, where companies are staying private longer.

They're continuing to grow, scale, compound in value as private companies, whereas a couple of decades ago, they would have gone public.

And that value creation would have accrued to public market investors.

But today, a lot of that value in the next generation tech companies is accruing to private market investors because those companies are staying private longer.

So those funds that are set up based on their size and scale to lean into those companies, those true disruptors, those true kind of iconic generational companies, I think that is how returns at scale can continue to be generated if those companies, you know, and we know which ones they are if they continue to, you know, grow and scale and raise capital in the private markets.

That's so interesting.

I'm glad you raised that.

It's interesting because I reflect on the types of firms I've backed as part of kind of the institutions I've been affiliated with over time.

One of the elements that has changed in venture is this notion of solar DP.

So one of the learnings, I think, that me and other LPs along the way have grown accustomed to is not to be afraid of key man risk.

Many of the great venture firms were founded and led by a single person.

I think we can think of a lot of examples of firms that even today, like even at a large scale, there is a single decision maker.

Elad is a great example.

kind of example of that.

Single decision makers can make decisions quickly.

They can lean into their conviction.

They can avoid groupthink.

They can avoid internal politics.