THREAD FOR LPs/GPs in VC: 1) I've been talking to VC fund managers (GPs)& the limited partners ("LPs") who invest in them (I'm an LP in numerous VC funds) about expectation for early DPI from seed&pre-seed funds. (DP ="Distributed to Paid In Capital" - i.e., cash $ back to LPs)
2) generally, it takes 7 or more years from vintage (the 1st time the VC fund calls capital) for seed/pre-seed VCs to really return any meaningful cash to LPs. This is part of why the asset class rewards "patient capital" & impatience is a mismatch for this asset class
Feb 21, 2022 • 28 tweets • 9 min read
This @StanfordSPARQ research is extraordinary: "asset allocators rated stronger & weaker teams differently in
terms of competence when their managing partner was White, but not Black. The same applied w/r/t
evaluations of social fit for stronger & weaker White-male–led teams"
LPs "have experience w/more or less competent White-male–led teams &can predict how their expertise will predict performance. However, they have less experience w/Black-male–led teams, competent or otherwise, & thus, find it
harder to use judgments of competence to predict"
Jul 6, 2021 • 15 tweets • 32 min read
@DrPhilGoff@RepKatiePorter 1) 2 extraordinarily important thinkers, who also know how to implement: @DrPhilGoff (Prof at @Yale & founder/head of @PolicingEquity) & @RepKatiePorter. In the decade since we last redistricted US Congress, police have killed at least 1 person in every one of the 435 districts
@DrPhilGoff@RepKatiePorter@Yale@PolicingEquity 2) We've lost political will to legislate national protections against violent racism: "The George Floyd Justice in Policing Act—which would ban chokeholds, restrict the use of no-knock warrants & make some officers personally liable in civil court-remains stalled in the Senate"
@Trace_Cohen@ankurnagpal 1) So the concept of "extremely founder friendly terms" is great in an up market. See course in "life during recessionary pandemic with 38M unemployed"
@Trace_Cohen@ankurnagpal 2) what if there's actually some complexity to some of this? What if it actually requires judgment & some customization? What if, maybe, you shouldn't get to keep the board seat forever - like if you stop performing...even if you founded the company?
May 17, 2020 • 38 tweets • 19 min read
1) "Federal Reserve developed the #MainStreetLending Program to help credit flow to small and medium-sized businesses that were in sound financial condition before the pandemic."
2) after initial announcement of #MainStreetLending Program, Fed Reserve expanded it to: Create a 3rd loan option, w/increased risk sharing by lenders for borrowers with greater leverage &
Lowered the minimum loan size for certain loans to $500,000 federalreserve.gov/newsevents/pre…
@schlaf@GundersonLaw 1) Not sure where that stat comes from. Having signed term sheets for A Rounds in NYC the day before 9/11, there was not a minute of lag time there. Slight delay in 2008. Slight delay in March 00. There's often a pause to recalibrate
@schlaf@GundersonLaw 2) we are seeing founders dig in on terms in some instances and we'll see how that plays out. Elsewhere, we're also seeing lots of inside-led rounds, whether convertible notes, SAFEs or straight equity
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