@@tunghuynhhuy6600 There's no one right answer - some people stand out with fantastic operating experience having been there and done that in the founders' shoes, some stand out with amazingly deep industry expertise, and then there is the SignalFire approach which is to build much better platform resources / products around recruiting, GTM etc
You've made a great videos. Would you elaborate more details about the profit Distribution between VCs and their LPs, the 2:20 and also the profit Distribution between investors under 1 Fund.
@@sigerry5336 Thanks! All the profits go back to LPs until they get their money back. Then beyond that, typically 80% of the profits go to LPs and 20% to VCs. I actually made another video explaining this here: ruclips.net/video/C8EIhZXHyTk/видео.html&ab_channel=WayneHu
Due to the power law curves of VC, would VC devote most of their attention to the top ventures within their portfolio and ignore those mediocre or struggling companies? Another question is the follow-on investments. I heard that every find has certain reserve. Is it first-ask-first-get? So even a successful company may not get a follow-on if the other portfolio companies have used up the reserve? Thanks in advance.
Wow, amazing video Wayne! Just read about the Power Law last night in Zero to One haha! So glad I found your channel so I can learn more about the VC space directly from someone crushing it in the industry!
Great video ! Have a question -- Why don't VCs see value in service businesses ? A tech stack can't create a home that reflects your story it's a high value touch and feel biz however most VCs shun biz that are not delivering on-demand standardised convienience.
@@nogatekeepers You've definitely achieved that goal. Your channel's gonna get bigger and more popular than any YC channel or something. No doubt about it. Love the level of humility and authenticity with which you share your knowledge.
Would you recommend getting into VC as someone who is primarily interested in having their own startup? Or would be more useful to join a startup if your end goal is to start your own?
great Q - if you don't have any specific passion area/expertise/idea, I think not a bad idea to join vc to give yourself a broader aperture. otherwise, I recommend just jumping in the deep end if you have conviction (but then again, why would you need to ask me then;)
Thanks for the detailed video. I’m wondering does the VC re-value the fund each year taking into account increased valuations of some startups? Is the 2% management based off of the new value of the fund or the original raise amount?
What would you recommend I do to start getting into this industry? I have experience in mortgages and Insurnace. What material should I study or what entry level jobs do I need to get into? Appreciate your response!
Hi Wayne, If I may ask, as a VC working at venture capital firm, who's money do you use to invest? is it your own money or the firm's money? and how does the firm regulate the amount of money each VCs spend?
We invest other institutions' money, like pension funds (eg from a teacher's union) or endowments (eg from a college). We have strict controls and decision making processes in place through our Investment Committee. Thanks for the question!
I love the entrepreneur's journey to do the impossible without any resources out of the gates - it appeals to my immigrant background seeing my parents move to the US from a rural farming village without much money. I also believe in technology as a potential transformational force for good, and to increase the collective level of empathy in the world, which is my personal mission
Possibly.....but I also heard a managing director at Warburg Pincus had a 300M trust fund. Even if I one dat made the Midas List as an all time great VC, I wouldn't make anywhere near that amount.
You've made a great videos. Would you elaborate more details about the profit Distribution between VCs and their LPs, the 2:20 and also the profit Distribution between investors under 1 Fund.
Thanks! All the profits go back to LPs until they get their money back. Then beyond that, typically 80% of the profits go to LPs and 20% to VCs. I actually made another video explaining this here: ruclips.net/video/C8EIhZXHyTk/видео.html&ab_channel=WayneHu
Aren’t a lot of VC’s ex-startup founders tho ? Why would a founder want to take capital from you if they feel like you haven’t been in their shoes, or have specific expertise knowledge in their companies domain industry ? What was your edge that made you valued as a VC and got you in the door ? I’d like a video on how YOU specifically became a VC. A lot of what you mentioned is Google-able knowledge so I’d love insight based on your actual personal experiences 🙂 I’d also like a vid on how you’d land a VC role in todays landscape if you were starting from scratch as a young person in 2024
The crazy thing is most VCs are not ex startup founders (including the most epically successful ones).....Mike Moritz, Fred Wilson, Peter Fenton, Brad Gurley, etc.....This is a paradox I can definitely talk about in a followup vid covering the great topics you suggested. I actually already have one done on breaking into VC I will post soon!
Good point - part of why it may be so Sales heavy is because it’s so competitive, which is good for founders but also a symptom of a m artificially low interest rate environment that arguably saw too much capital slosh into venture
@@nogatekeepers in the meantime Wayne, could you maybe do a video on what exactly drives unscrupulous, unethical VC's to do shenanigans like, sell the land and building and turn around and rent the same assets to the company?? This is like someone putting you to perform on stage on a small rug and then sneaking up behind you and pulling that rug from under you and expect you to keep performing. Is the ROI pressure that high that VC's are forced to recoup losses by any means necessary??
@@bzmrgonz Hmm I'm not sure I've seen a ton of that, although it does happen and tends to be a tier 3 VC phenomenon serving founders who unfortunately have a harder time accessing capital. I was actually planning on doing a video on why VCs behave badly, and the unique incentive structure (E.g. super long decade-plus feedback loops) that drive this
Though i found vc job so cool that I want to start doing it but I am not from finance background rather a medical one. I am just in the catch of cool job to get some extra money though i am very keen to learn a new skill should i go for it I am currently 19 and thinking of taking beginner course of vc should I go for it tell me from your experience senior?
The reason why there is no one really talking about AG/VC/PEs is because they can't say any specific examples or details. But without it just makes them look like associates. It's a self-sealing dirty industry :-)
Hi Wayne! It's really an insightful video. I just have one year of work experience as a PMO, and currently, I'm considering getting into VC. So, can you share more information on how can one get started working in VC/as VC?
Hey Rocky - thanks for reaching out! If you've got a question, feel free to post here. I'm on LinkedIn but to be honest, it's pretty inundated with spam messages so stuff there falls through the cracks
@@nogatekeepersI have been watching your videos and learning as much as I can from the content. Not a pro yet, however taking baby steps in comprehending the whole process. I am looking to assist my client get a venture funding done for their business. Wanted to reach out to check if it's something you and other general partners at Signalfire would be interested in venturing into. I have reached out to you on LinkedIn yesterday. I know it may be an hassle going through the spam, but if we could connect and discuss over the scenario, and see if that's something we can work on.
What surprises you mmost about venture capital? What questions do you still have unanswered about the industry?
In this current market where there are a lot of VCs out there, how do you stand out?
@@tunghuynhhuy6600 There's no one right answer - some people stand out with fantastic operating experience having been there and done that in the founders' shoes, some stand out with amazingly deep industry expertise, and then there is the SignalFire approach which is to build much better platform resources / products around recruiting, GTM etc
You've made a great videos. Would you elaborate more details about the profit Distribution between VCs and their LPs, the 2:20 and also the profit Distribution between investors under 1 Fund.
@@sigerry5336 Thanks! All the profits go back to LPs until they get their money back. Then beyond that, typically 80% of the profits go to LPs and 20% to VCs. I actually made another video explaining this here: ruclips.net/video/C8EIhZXHyTk/видео.html&ab_channel=WayneHu
Due to the power law curves of VC, would VC devote most of their attention to the top ventures within their portfolio and ignore those mediocre or struggling companies?
Another question is the follow-on investments. I heard that every find has certain reserve. Is it first-ask-first-get? So even a successful company may not get a follow-on if the other portfolio companies have used up the reserve?
Thanks in advance.
6:48 - showing us google's first homepage and apple's first prototype was so damn eye-opening, thanks for sharing.
You're welcome.- it's crazy isn't it!
back om those days, creating that was equal to creating google today.
This is a great list! I’m an angel investor slowly getting into the VC world and it’s more of a solo sport than I initially thought.
Thanks Rishad! Welcome to the wacky world of VC :)
Wow, amazing video Wayne! Just read about the Power Law last night in Zero to One haha! So glad I found your channel so I can learn more about the VC space directly from someone crushing it in the industry!
Thanks so much Cameron, very glad you find my content interesting! Will be putting out a lot more soon
Well made vid - cool to see a VC influencer
Thank you Jason!!
The memes in the beginning were 😂Good insights/perspectives into the downsides of the buy side of the venture industry.
Thanks so much, glad you liked it!
Grandmaster Explanatory Skills per usual. Always love the clear effective communication in your content Wayne! MORE!!!
Thanks so much Barry!! Absolutely - stay tuned, a lot more videos are on the way...
Great video ! Have a question --
Why don't VCs see value in service businesses ? A tech stack can't create a home that reflects your story it's a high value touch and feel biz however most VCs shun biz that are not delivering on-demand standardised convienience.
Thanks! Software models are just higher margin and easier to scale - but VCs may be changing their tune as AI starts to attack services businesses…
@@nogatekeepers Thanks for the insight I run a home interiors brand in Bangalore :) let's hope VCs swing in our favour someday :)
Thanks for shedding light unto the industry for those outside of it!
You bet! That’s my goal, very glad to hear it is appreciated!
@@nogatekeepers You've definitely achieved that goal. Your channel's gonna get bigger and more popular than any YC channel or something. No doubt about it. Love the level of humility and authenticity with which you share your knowledge.
@@alexander3845That's incredibly kind of you. Will keep doing my best to make better and more useful content!
Cool video. As a founder, I sometimes think what it'd be like on the other side of the pitches. Great insight!
Thanks! Glad you enjoyed it Samuel!
Would you recommend getting into VC as someone who is primarily interested in having their own startup? Or would be more useful to join a startup if your end goal is to start your own?
great Q - if you don't have any specific passion area/expertise/idea, I think not a bad idea to join vc to give yourself a broader aperture. otherwise, I recommend just jumping in the deep end if you have conviction (but then again, why would you need to ask me then;)
Thanks for the detailed video. I’m wondering does the VC re-value the fund each year taking into account increased valuations of some startups? Is the 2% management based off of the new value of the fund or the original raise amount?
Thanks for the question! The management fee is based off the original raise amount
What would you recommend I do to start getting into this industry? I have experience in mortgages and Insurnace. What material should I study or what entry level jobs do I need to get into? Appreciate your response!
Hi Wayne, If I may ask, as a VC working at venture capital firm, who's money do you use to invest? is it your own money or the firm's money? and how does the firm regulate the amount of money each VCs spend?
We invest other institutions' money, like pension funds (eg from a teacher's union) or endowments (eg from a college). We have strict controls and decision making processes in place through our Investment Committee. Thanks for the question!
This is an incredibly well-made video with lots of insights!
Thank you Rob!!
This may be a personal quetion, but what got you to enter VC instead of PE or HF?
I love the entrepreneur's journey to do the impossible without any resources out of the gates - it appeals to my immigrant background seeing my parents move to the US from a rural farming village without much money. I also believe in technology as a potential transformational force for good, and to increase the collective level of empathy in the world, which is my personal mission
Just love your videos, as a founder I find them extremely informative. Thank you!
Would love to have a chat with you one day
So glad you like these videos!
increadibly well-made and informative, thanks!
Thanks for the kind comment and glad you found it helpful!
Vc could end up earning more than HF/PE, If they actually picked and IPOed the right ones?
Possibly.....but I also heard a managing director at Warburg Pincus had a 300M trust fund. Even if I one dat made the Midas List as an all time great VC, I wouldn't make anywhere near that amount.
Wow! That’s a lot of information in this video👏🏽👏🏽
Thanks! Hope you enjoyed it!
You've made a great videos. Would you elaborate more details about the profit Distribution between VCs and their LPs, the 2:20 and also the profit Distribution between investors under 1 Fund.
Thanks! All the profits go back to LPs until they get their money back. Then beyond that, typically 80% of the profits go to LPs and 20% to VCs. I actually made another video explaining this here: ruclips.net/video/C8EIhZXHyTk/видео.html&ab_channel=WayneHu
@@nogatekeepers thanks!
@@sigerry5336 You're welcome!
Aren’t a lot of VC’s ex-startup founders tho ?
Why would a founder want to take capital from you if they feel like you haven’t been in their shoes, or have specific expertise knowledge in their companies domain industry ?
What was your edge that made you valued as a VC and got you in the door ?
I’d like a video on how YOU specifically became a VC. A lot of what you mentioned is Google-able knowledge so I’d love insight based on your actual personal experiences 🙂
I’d also like a vid on how you’d land a VC role in todays landscape if you were starting from scratch as a young person in 2024
The crazy thing is most VCs are not ex startup founders (including the most epically successful ones).....Mike Moritz, Fred Wilson, Peter Fenton, Brad Gurley, etc.....This is a paradox I can definitely talk about in a followup vid covering the great topics you suggested. I actually already have one done on breaking into VC I will post soon!
So VC are sales agents with a fancy title? Where do they get the money from?
@@Naomi-wb3dq they have to raise it from large capital sources like university endowments, state pensions, charitable foundations etc
VCs PRETEND to be coaches, not VCs ARE coached.
It really is a sales job but should it be...
Good point - part of why it may be so Sales heavy is because it’s so competitive, which is good for founders but also a symptom of a m artificially low interest rate environment that arguably saw too much capital slosh into venture
I look forward to your part 2.... AFTER you leave the industry!! You know.. when you loose the fear of being fired by your bosses!! Keep me posted!!!
LOL
@@nogatekeepers in the meantime Wayne, could you maybe do a video on what exactly drives unscrupulous, unethical VC's to do shenanigans like, sell the land and building and turn around and rent the same assets to the company?? This is like someone putting you to perform on stage on a small rug and then sneaking up behind you and pulling that rug from under you and expect you to keep performing. Is the ROI pressure that high that VC's are forced to recoup losses by any means necessary??
@@bzmrgonz Hmm I'm not sure I've seen a ton of that, although it does happen and tends to be a tier 3 VC phenomenon serving founders who unfortunately have a harder time accessing capital. I was actually planning on doing a video on why VCs behave badly, and the unique incentive structure (E.g. super long decade-plus feedback loops) that drive this
Great video, Wayne Hu!
Thank you Eduardo!
Though i found vc job so cool that I want to start doing it but I am not from finance background rather a medical one. I am just in the catch of cool job to get some extra money though i am very keen to learn a new skill should i go for it I am currently 19 and thinking of taking beginner course of vc should I go for it tell me from your experience senior?
Yeah I think best to try to break into tech (where there are tons more jobs) first before trying to get into vc
Thank you Wayne - learned so much from your video :)
Great to hear :) thank you for watching and the kind comment!
The reason why there is no one really talking about AG/VC/PEs is because they can't say any specific examples or details. But without it just makes them look like associates. It's a self-sealing dirty industry :-)
Hi Wayne! It's really an insightful video.
I just have one year of work experience as a PMO, and currently, I'm considering getting into VC.
So, can you share more information on how can one get started working in VC/as VC?
Thanks Tushar! Yes this is actually a video idea I was thinking about for Awhile, I’ll try to do it sometime this summer :)
Really enjoy the video - such a good and thorough intro to outsiders.
Thanks so much for the kind comment! Glad you thought so!
What is the best way to reach out to you directly!?
Hey Rocky - thanks for reaching out! If you've got a question, feel free to post here. I'm on LinkedIn but to be honest, it's pretty inundated with spam messages so stuff there falls through the cracks
@@nogatekeepersI have been watching your videos and learning as much as I can from the content. Not a pro yet, however taking baby steps in comprehending the whole process. I am looking to assist my client get a venture funding done for their business. Wanted to reach out to check if it's something you and other general partners at Signalfire would be interested in venturing into. I have reached out to you on LinkedIn yesterday. I know it may be an hassle going through the spam, but if we could connect and discuss over the scenario, and see if that's something we can work on.
0:18 I was very confused when you said a decade. You look like you graduated high school yesterday. Tell me your skincare routine
LOL - did about a decade of work before venture. I'm OLD
This guy is a VC alright
Moore Kevin Robinson David Harris Jeffrey
whats with the hair? and im so tired of tech bros in 4 dollar t shirts. i guess im old.
Lol fashion isn’t my strong suit. Neither is hair, although my wife seems to like it so I guess that’s good enough!
Who gives a shit Boomer. This man is doing amazing work and he’s brilliant. He won’t say it but I will. Fuck off and stay focused.