You Can't Eat IRR: Why Venture Capital's Economics Are Broken
Venture capital loves to talk about returns, but what happens when the returns stop coming? Johnny, a venture investor who has deployed capital inside a $20 billion corporate fund, a top-quartile independent fund, and now a first-time fund backed by a $500 million Kansas City real estate platform, has seen the industry from every angle. And he's not afraid to say the quiet part out loud: many fund vintages aren't returning capital to their investors, and "you can't eat IRR." In this conversation, Johnny breaks down why he's betting on pre-seed startups instead of chasing the mega-rounds…
The skinny
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