Qubit: Compound's Manual on Venture Capital

This is a good summary on investing in venture by Compound.

But one should keep in mind that these financing stages are a lot more fluid today than ever before. Especially when a founder can raise $350m for his startup's first venture round.

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“In summary, early-stage funds might have a higher percentage of their companies fail—but the ones that succeed generate a higher return. Late-stage funds expect to have lower losses, but their biggest ‘wins’ generate less upside as a result of having a higher entry-point valuation since they are investing in a company that already has a proven product. (See below for an illustration of how expected loss ratios decline in line with underwritten returns.) Often, which approach—early-stage or late-stage investing—brings higher overall returns depends largely on the skill and selection of the individual manager.”

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Source:

Investing in Venture Capital

Sheel Mohnot @pitdesi

A16Z is leading a $350M (their largest ever) round into Adam Neumann’s new real estate company Flow. Flow bought 3,000 rental units in S Florida, Nashville, & Atlanta. Business model is unclear, seems like wework for housing + some ownership for renters

a16z.comInvesting in Flow | Andreessen HorowitzOur nation has a housing crisis. The demographic trends driving America’s housing market are impossible to ignore: our country is creating households faster than we’re building houses. Structural shortages in available homes for sale push housing prices higher, while young …

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