Ramtin Naimi

And then you're starting to invest in managers that you think could find alpha in one way or another.

The part of the ecosystem that seems unhealthy to me

and is very reminiscent of 2021, is the timeline from graduation from seed to A, A to B, B to C. In the last six months, I think I've funded seven companies that have already raised Series A rounds within weeks of me leading their seed financings.

And at a four to five X multiple at which I financed the company at just a few weeks prior,

and not a whole lot of fundamental business progress in that timeframe.

And that hasn't happened since 2021.

In 2021, I was funding companies and within a couple of months, the series A got done.

And that is very actively happening again.

I'm funding companies that are raising A's within a couple of months and then B's within a couple of months after that.

And if you look at the company relative to what I invested in versus what the company is today, they're basically just paying 10 times the price for the same exact company I invested in a couple of months or four months ago.

plus or minus a few hires and maybe some design partners.

So I do think the industry is getting a little drunk on IRR.

And the same thing that happened in 2021 is happening again in terms of my latest funds are coming out of Jcurb way too quickly.

I think in venture, your IRR should be backweighted.

Should be rising.

Exactly.

In the 2021 vintage and the latest vintage, our funds are getting to 30 to 40% IRR within the first few months of initial deployment, which shouldn't be the case.

It should be negative IRR, at least during the deployment period.

The velocity at which companies are raising follow-on funding is a little jarring.

I had a very non-traditional by Silicon Valley standards childhood.