Friday Letter

Mega-funds capture the headlines, but LPs are still interested in smaller funds, especially those that are domain experts.

LPs have earned just 41 cents for every dollar invested in vintage-2017 venture funds.

Industry participants are trying to come up with standardized legal clauses to help enhance corporate governance in AI investments.

As large infrastructure funds siphon capital from early-stage climate-focused venture managers, more of the latter are turning to European LPs.

LPs are writing big checks for AI-focused funds managed by the industry’s largest players while turning away smaller players or funds that aren’t all-in with AI.

Growing familiarity with AI and machine learning is helping break down investors’ natural resistance to category-defying technologies.

Continuation vehicles allow VCs to hang on to a prized asset and deliver liquidity to their investors

As use cases for digital payment systems expand, more payment rails providers that can secure licenses across multiple critical markets will be needed. VCs are keen to back them.

A growing number of VC-backed companies are selling to private equity, even though PE firms generally don’t pay as much as strategic buyers.

Airtable’s acquisition by Bending Spoons at a price below its cumulative capital raised is gaining attention as a cautionary tale, but some VCs see it as a bold move.