Rethinking Venture Capital

[00:00:00]Traditional venture capital was designed in Silicon Valley in the 1970s. That model does not work and increasingly it does not work anywhere. Problem number two is the binary outcome. VC is a power law game. They expect nine of 10 investment to fail and one to return the whole fund. That works if you are Sequoia with its 200 portfolio companies.

[00:00:24]It does not work if your family office or ultra high net worth individual writing a 500 K check and expecting to sleep at night. Third problem is the structure. Most funds are structured for the fund manager, not the LP, not the limited partner. It's a system designed to extract value from the people who provide the capital, not to create it with them. I am building this fund to solve all three of those problem and I did it by starting with one simple question. What would I want as a limited partner in a fund. Let me walk you through the architecture. 50% debt, 50% equity.