20VC Newsletter - 5th May 2025
Here are the transcripts and top takeaways from 20VC episodes released this last week.
Monday’s episode with Taavet Hinrikus, Partner @ Plural":
Download the full transcript:
My 7 key takeaways:
Why We Prefer Serial Entrepreneurs
They usually go for a bigger goal the second time around.
Torsten Reil built a gaming company before Helsing.
Daniel Ek built an e-commerce company before Spotify.
Even if the likelihood of success is the same the outcome is so much bigger.
Why the Fee Structure of Venture Is Broken and VCs Should Not Get Rich From Deploying Capital
The idea of collecting a 2-2.5% management fee does not align us with the outcomes.
We charge half of that at Plural & it enables us to make a few more investments.
You don’t want to hire people who are here for the biggest salaries.
The Fund That Makes Every Partner Invest Their Own Money With Every Check
Every deal we do, the lead partner writes a personal check.
The size of it depends on the individual’s position.
We don’t like the idea of “playing with the house money”.
How This $500M Fund Makes Decisions
Every investor can only do a limited amount of deals a year, they have to commit their personal money & write a memo about the deal.
The memo has to include:
Why is it important to them?
Why is it important to the founder?
How can it be 100x from here?
Every deal we do, the partner has to be excited enough to be a co-founder of the company.
If It Is Not 100X We Do Not Want to Do the Deal
There are many great investments that are guaranteed to 5x.
They are not for Plural.
If we cannot imagine a 100x outcome we do not do the deal.
Change the GDP of Europe or No More Money for You
We tell our founders we’re here to have GDP levels of impact.
If your company is not doing it, we should not continue to fund it.
You can keep working on it, we’ll do our best to help you but it does not guarantee the next checks.
Why Europe Needs to Build Its Own Tech Now More Than Ever
Two things have happened:
The Russia/Ukraine war
Zelensky’s grilling at the White House
The US cannot be trusted to be the protector of Europe anymore.
We need our own defence, space, & energy sector.
Behind the Scenes:
Thursday’s episode with Rory O'Driscoll, GP @ Scale & Jason Lemkin, Founder @ SaaStr & Fabrice Grinda, Founding Partner @ FJ Labs:
Download the full transcript:
My 6 key takeaways:
Why IRR Is the Hardest Thing to Control?
The timing of the exits.
Everyone is suffering from degradation now.
They are going to get the same return in 2026 that they thought they were going to get in 2024.
Sell Your Winners: The Anti VC Strategy
When I feel like a company is overvalued & can no longer underwrite a 10x, I sell my winners.
Most of my exits in the last 3 years have been secondaries.
Sequoia the Best Strategy at the Worst Time
Sequoia’s evergreen fund was a brilliant idea.
Unfortunately they launched it in the only year where it was the wrong timing.
Fundamentally it was still the correct insight across 20-30 years.
Fund Returners Are Not Good Enough Anymore
1x is not good enough for me at this point anymore.
It does not put me in carry mode.
We need at least 3x.
Three Different Players in a World of AI
Three players:
AI behemoths: ServiceNow, Oracle, etc.
AI teenager: Pre-LLM companies, already building something from 2018.
Post-LLM: YC, next-gen companies.
Are Benchmark Wrong to Lead Manus’ Round in China
It may make sense financially – idiosyncratic risk, lower price, high upside.
BUT they are also taking firm risk.
It’s a very different risk from investing in Anduril vs getting involved with China.
Friday’s episode with Reggie Marable, Head of Sales @ Sierra AI:
Download the full transcript:
Let us know what your big takeaways from this week’s shows were in the comments below!
Thank you for reading, and don’t miss the great guests we have next week:
Monday episode: Bucky Moore, Partner @ Kleiner Perkins
Thursday episode: Jason Lemkin & Rory O'Driscoll
Friday episode: The Memo
Thank you for reading 20VC.
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