VCs Need the Good Tweets
Also liquidation preferences, anti-ESG, Putin ESG, indoor vs. outdoor investment decisions, Japanese bond market liquidity and yeeting sus altcoins.
Programming note: Money Stuff will be off tomorrow, back on Monday.
A decent model for venture capital investing in recent years — though possibly not anymore? — is that capital is plentiful, investment decisions are easy, and the hard part of the job is deal flow. Every year there are some good startups raising money, they get to choose their investors, investors compete to be on the list, and your job, as a VC, is to win that competition and get the good deals. If your skill as a venture capitalist is raising money from limited partners, or evaluating companies and deciding which ones will succeed and which will fail, that’s no good. Everyone can do that; it’s easy to raise money and to identify the good startups. What’s hard is to get an allocation in an investment round with a good startup.