Caught up w/ some professional LP allocator friends 👀 Sequoia’s new growth fund just cut mgmt fees to 1.75% is a big signal for how VC is doing as a financial product. many brand names are not even shipping positive IRR for their latest funds..

VC is in a weird spot: Overallocated, AUM-bloated, underwhelming returns

In a 5%+ rate world, capital’s not dumb anymore. Private credit is eating lunch (it's blooming for past 4 years). Bluechip tech VCs are all trying the fee-lite RIA & soft P/E play, buy out legacy biz and slap AI on it

Crypto VC is a small subset of this asset class is also facing immense fundraising pressure. another interesting fact they've mentioned is they dont see there is "asset specific GP play" in the long run 🤔