Larry Cheng

I liked innovation.

So that was fun.

And that got me into investing.

And I started Venture Capital at Bessemer Venture Partners.

And I haven't stopped having fun ever since.

It's been 27 years.

I work with phenomenal entrepreneurs every single day and it's a lot of fun.

That's a great question, Ryan, and I think it's an important thing to elevate to all of your listeners.

First, let me say there are different asset classes within private equity.

Venture capital is the early stage group.

Where I sit, volition capital is growth equity.

It's investing in growing businesses with revenues and so forth.

And then there's buyout, which is large companies, levered transactions to go buy them.

You're right.

Venture capital is what we call a high loss rate asset class.

They lose money a ton.

It's about 70% of the time.

And they try and make it up on the one big winner, exactly what you described.

I think it's really important before you take venture capital dollars to understand that reality.

That is the underwriting philosophy of the firm.