The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Why VC is a Ponzi Scheme Today | Why Most VCs are Bankers | Why Big VCs Ruin Startups | Why Incentives in VC are Broken | Why American Dynamism is a Tool for VCs to Raise Money with Nick Chirls, Asylum Ventures
06 Sep 2024
Full Episode
Your junior partner, like a VP at Goldman, they are compensated and promoted based on money velocity, not money returns. What's an ideal company for that model? It's a company that requires insane amounts of capital, right? Like the foundation models are like a big, big VC firm's dream. They literally require billions and billions of dollars to go pie effectively NVIDIA GPUs.
What is the business model for large venture banks? Deployment. Yeah. Raise as much money as possible. Get that money out the door as soon as possible. Raise as much money again and rinse and repeat.
I mean, this is one spicy show today. We last had Nick Churls on the show nine years ago when he founded Notation. Today, he's back with the announcement that he's founded another venture firm, Asylum Ventures, a 55 million early stage firm in New York that's really focused on treating founders like artists, not like assets. And this show is spicy.
Why VCs are just like bankers, why venture has become a Ponzi scheme and how the mega firms ruin startups by funding inefficiency and even encouraging it. There is so much good stuff in this one and it is not to be missed.
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