The 10X Capital Podcast
The 10X Capital Podcast is a podcast that interviews the world's leading institutional investors. Previous guests include The Ford Foundation, Northwestern University Endowment, CalPERS, Stepstone, and other top limited partners.
E4: Dr. Abe Othman of AngelList | Data, Research, and Quantitative Investing in Venture Capital
David Weisburd and Erik Torenberg sit down with Dr. Abe Othman, the Head of Data Science at AngelList and the Head of the Investment Committee at the AngelList Quant Fund. Dr. Abe has one of the largest and most granular private market data sets in the world of nearly 15,000 startups. In this discussion we dive deep into the data: power laws, what Dr. Abe’s research tells us about which companies to avoid at all costs, and whether alpha truly exists in venture capital. If you’re ready to level-up your startup or fund with AngelList, visit www.angellist.com/tlp to get started.
Key Points
- Founders from top educational institutions may possess a positive signal for higher startup performance, but the awareness of this signal often leads to higher valuations, potentially lowering future returns for investors.
- The venture capital market appears to have pricing efficiency, meaning that higher-priced deals tend to deliver proportionately higher returns, minimizing the impact of simple positive signals as investment strategies.
- Solo GPs and small partnerships often outperform larger funds due to their ability to assess the credibility of early-stage deals within their specific domain of expertise.
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Transcript
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