David Tisch & Terrence Rohan: Biggest Misconceptions & Hardest Truths About Seed Investing | E1112
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David Tisch is the Managing Partner of BoxGroup, one of the leading seed-stage investment firms of the last decade having invested in over 500 seed-stage startups, including Plaid, Ro, Ramp, PillPack, Amplitude, Stripe, Warby Parker, Harry’s, Flexport, Classpass, Airtable and more.
Terrence Rohan is the Managing Director @ Otherwise Fund, a fund that discretely empowers a network of today’s top founders to make multi-stage venture investments. Terrence has invested in the likes of Figma, Hugging Face, Vanta, Notion and Robinhood to name a few.
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Timestamps:
(0:00) Intro
(00:53) Guest Introductions
(04:19) Winning the Best Founders
(13:52) Disrupting the Seed Market
(18:54) Venture Capital's Evolution
(28:37) Seed Investing Myths
(35:11) Closing Long Commitment Deals
(01:04:01) Cashing Out vs. Staying Invested
(01:05:22) Staying Relevant in Investing
(01:09:18) Quick-Fire Round
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In Today’s Seed Investing Special We Discuss:
1. Is Seed Investing Now a Commoditised Asset Class:
Why does Dave Tisch believe seed investing will remain the most inefficient market? What does that mean for the future of returns at seed?
Why should you always pay up and be price-insensitive at seed rounds?
Why does David believe that no one is great at seed investing?
Why does David believe that you cannot index the seed market?
2. The Biggest BS Elements of Venture Capital:
Signaling: Why does David believe that the theory of signaling is total BS? Why does Terrence disagree and think it is valid and common?
Group Decision-Making: Why does Terrence believe that investing decisions should be made solo and groups merely encourage consensus decision-making?
Reserves: Why does Terrence believe reserves hurt DPI and are not good? How does David respond given his growth fund?
Venture Value Add: Why do David and Terrence think venture value add services platforms are BS and not worth it?
3. The World of LPs:
What is the single biggest misalignment between VCs and LPs?
What are David and Terrence’s biggest pieces of advice for emerging managers today?
Should LPs expect depressed returns from venture as the asset class commoditises?
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Subscribe on Spotify:
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