Twitter Conversation & Reading Recommendations from Pmarca.

Twitter Conversation & Reading Recommendations from Pmarca.

For a long time I was confused about how VC’s work, especially given my reasonable level of mathematical competency. I had to get to the bottom of it.

Most of the VC’s I tweeted on twitter couldn’t answer the questions that had arisen from me having studied a history VC returns and financial instruments.

I posed the following tweet to pmarca, a prominent Silicon Valley investor, a successful VC, and one of the only reasons I log on to twitter. He gave me a solid response and a lot of useful reading recommendations which I think could be standard reading for finance plebians like me. It cleared up a lot of my misperceptions about VC funding. Full twitter conversation here.

Marc Andreessen Replied and Recommended These Readings:

Fun Graphs.

How returns are affected by time and multiple.

You only make real success by swinging for the risky.

By the time something is a no-brainer, you’ve already failed as a VC.

“ These 20 firms don’t change much over time and are so oversubscribed that they are very hard for new limited partners to access. The premier endowments are considered the most desirable limited partners by venture capitalists because they are the most committed to the asset class. Even these endowments, though, have a hard time getting into funds if they weren’t there in the beginning. Occasionally new firms like Benchmark and Andreessen Horowitz emerge and break into the top tier, but they are the exception rather than the rule.”

If you enjoyed this high level post and want to see more then Follow me on twitter, recommend this article, and I’ll keep writing them. Cheers.

Feedback welcome.

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