Dave McClure sits down with David Weisburd to discuss his journey into venture capital, including luck, his investment strategy, and the challenges he faced breaking into the industry. He provides an analysis on his two 40x+ funds, 500 Startups, and the misalignment between LPs and GPs. The episode also delves into the concept of his new firm Practical Venture Capital, competition in the secondary market, and the trade-off between unrealized TDPI and realized DPI.
The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co
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X / Twitter:
@davemcclure (Dave)
@dweisburd (David)
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LinkedIn:
Dave: https://www.linkedin.com/in/davemcclure/
David: https://www.linkedin.com/in/dweisburd/
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LINKS:
Practical Venture Capital: https://practicalvc.com/
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NEWSLETTER:
By popular demand, we’ve launched the 10X Capital Podcast newsletter, which offer’s this week’s venture capital and limited partner news in digestible news bites delivered straight to your email. To subscribe please visit: http://10xcapital.beehiiv.com/
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Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at david@10xcapital.com
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TIMESTAMPS
(0:00) Introduction to Dave McClure and his journey in Silicon Valley
(4:00) McClure's entry into venture capital and creation of the Start-Up Metrics for Pirates
(12:14) Dave McClure's investment strategy and the role of luck in venture capital
(20:09) McClure's struggle to break into the venture capital field and his rejection from Sequoia
(23:10) The premise and analysis of 500 Startups
(27:34) The misalignment between LPs and GPs and the math behind achieving breakout success
(33:07) The investment pace and international strategy of 500 Startups
(37:16) The concept of Practical Venture Capital and the challenges of long hold times
(44:29) The competition in the secondary market and the trade-off between unrealized TDPI and realized DPI
(47:12) 10X Capital Podcast Newsletter
