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.
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. If you’re ready to level-up your startup or fund with AngelList, visit https://www.angellist.com/tlp to get started.
Key Points
- Portfolio concentration is critical in venture capital, as demonstrated by Summit Peak's experience where the top 25 investments constitute 77% of their portfolio's fair market value, highlighting the power law even within a large pool of companies.
- Summit Peak Partners' investment approach prioritizes early-stage venture funds with high ownership mindsets, aiming for 10% or greater in each investment, though they remain flexible with GPs who can increase ownership over time.
- The venture capital landscape is facing a potential exodus of "tourist capital," with many new funds raised during the pandemic at risk of not securing a subsequent fund due to a lack of stickiness and the return of a more discerning, value-driven market.
Chapters
| 1:00 | |
| 1:44 | |
| 2:57 | |
| 3:28 | |
| 8:06 | |
| 16:24 | |
| 14:06 | |
| 19:39 | |
| 24:29 | |
| 29:14 | |
| 31:20 | |
| 34:13 | |
| 36:18 | |
| 36:45 | |
| 38:43 | |
| 41:00 |
Transcript
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