Josh Thompson

About

The podcast features a discussion with Josh, a venture capitalist, who reflects on the evolution of the venture capital ecosystem over the past two decades. He highlights the significant increase in the number of funds and active check writers, which has made the industry more competitive for venture capitalists but beneficial for entrepreneurs due to the availability of more capital. Josh discusses the shift in fund size and the implications for limited partners (LPs), noting that larger funds may focus on total cash returns rather than high internal rates of return (IRR). He introduces the concept of the "venture arrogance score," which evaluates a fund's business model based on its size and expected ownership percentage at exit. Josh emphasizes the importance of holding onto [...] at exit. Josh emphasizes the importance of holding onto investments during extreme market cycles, as most venture returns are generated during periods of irrational exuberance. He shares insights from his experience at First Round, noting that over 90% of their returns were generated in a 36-month period. This highlights the challenge of maintaining discipline and resisting the temptation to exit early. Josh also discusses the impact of large funds on the venture landscape, suggesting that while they may have more relevance and influence, smaller funds like First Round can offer better alignment with founders by focusing on early-stage investments and avoiding conflicts of interest. Josh reflects