10X Capital Podcast
The 10X Capital podcast interviews the world's premier institutional investors to deliver insights on how they manage their capital. Interview topics include investment decision frameworks, capital allocation strategies, GP/LP relationships and many more.
E8: Apurva Mehta of Summit Peak on Why Fee Sensitivity Leads to Adverse Selection in Venture
David Weisburd sits down with Apurva Mehta, the co-founder of an early stage fund of funds at Summit Peak and formerly an institutional investor at endowments (Juilliard, Cook Children’s Hospital) to discuss power laws in portfolios, alpha in early stage investing, and what differentiates a great LP.
Key Points
- The power law in venture capital portfolios demonstrates that a small percentage of companies often account for the majority of returns, emphasizing the importance of access to high-potential investments.
- Specialized, early-stage venture funds can compete with larger, well-known firms by offering focused, hands-on support to founders, which is particularly valuable during the seed to Series A stages.
- Investors need to prioritize disciplined portfolio construction, valuation sensitivity, and maintaining high ownership stakes to generate sustainable alpha in early-stage venture capital.
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Chapters
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Transcript
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