20VC: Why VC Subsidizes the Wrong Type of Business, Why Capital Gains Tax is Crazy, The Biggest Misalignments Between VCs, Founders and LPs, Why Business Model - Product Fit is as Important as Product-Market-Fit with Chris Paik @ Pace Capital

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

The Twenty Minute VC

Finance, Venturecapital, Tech News, News, Siliconvalley, Technology, Investing, Startups, Business

4.4 • 637 Ratings

🗓️ 8 May 2023

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Chris Paik is a General Partner @ Pace Capital, an early-stage venture firm in NYC. Pace's first fund was $150M and their second was $250M. Before co-founding Pace, Chris was a General Partner at Thrive Capital where he spent an incredible 8 years having joined the firm when they were on their first $10M Fund.

In Today's Episode with Chris Paik We Discuss:

1. From Hipster to One of NYC's Best VCs:

How Chris made his way from not knowing about venture capital to being one of the most prominent in NYC?
What are 1-2 of his biggest takeaways from his 8 years at Thrive? How did they impact how he thinks about building Pace today?
What are Chris' biggest lessons from working with Josh Kushner? What did Josh do to spot young talent in a way like no one else did?

2. The Core Pillars of Successful Venture Investing:

"Invest in companies that can be described in a single sentence". What does Chris mean by this? How does that impact the type of companies he looks to invest in?
"Business Model Fit is as important as PMF". What does Chris mean by this? How does he determine where a company has business model fit?
How does Chris analyze his relationship to market sizing? How does Chris think about how willing he is to take a bet on market timing?
Why does Chris believe that the more "virtuous" a company is, the less enterprise value it will have?

3. What is Wrong with Venture Capital: The Misalignments:

What does Chris believe are the single biggest misalignments between VCs and Founders?
What does Chris see as the biggest misalignments between VCs and LPs?
Why does Chris believe we should scrap capital gains tax and all be taxed as an income tax?
Why do acquisitions allow investors to be screwed over by the acquiring company?

4. The Future of Social and User Generated Content Platforms:

How does Chris analyze consumer businesses according to "The Seven Deadly Sins"? Why does he call them, "The Seven Deadly Motivators"?
What does Chris believe is the future for Substack? Why does it not have Business Model Fit?
What are 1-2 of his biggest lessons from being on the Twitch board? How did that experience impact his mindset and approach to what good is in UGC and social?
What does Chris believe is the number one thing to look for in a potential consumer social investment? What do so many miss?

Transcript

Click on a timestamp to play from that location

0:00.0	The vast majority of direct-to-consumer brands, not suitable venture investments.
0:05.6	Venture capital subsidizes business building of companies that should never have been venture capital targets.
0:13.3	Venture capital is not responsible for putting a sandwich shop in business. Where does the line stop?
0:19.5	You are listening to 20 VC with me, Harry Stebbings,
0:21.8	and this discussion today was so, so awesome to do for context. I first bonded with this guest
0:26.6	many years ago on an index ventures trip to Iceland for early stage managers. We've been friends
0:32.1	ever since, and so it's taken us a couple of years to make this happen, so I'm thrilled to welcome
0:35.8	Chris Pike, general partner at Pace Capital, an early stage venture firm in New York. Their first fund was $150
0:42.2	million, and their second most recently was $250 million. And before co-founding Pace, Chris was a
0:48.1	general partner at Thrive Capital, where he spent an incredible eight years having joined the firm
0:52.3	when they were on their first fund at $10 million.
0:55.0	But before you dive into the show's day, are you building enough conviction to outpace other investors in this changing ecosystem?
1:02.0	Tegas helps VCs get under the hood of their investments quicker.
1:06.0	Map evolving markets with deeper research, monitor the financial health of portfolio companies, and even
1:11.3	source new deals.
1:12.6	Teegas is trusted by top firms like Redpoint and Spark Capital for everything from expert
1:17.6	calls and transcripts to quickly surfacing insights across filings, comps and benchmarking.
1:23.1	Find out why a majority of the top venture funds are using Teegas on a daily basis to differentiate,
1:28.6	consolidate and accelerate their research. Head to Teegas.com forward slash growth for your free
1:34.0	trial. And speaking of tools we cannot live without there, Secureframe is the leading all-in-one
1:38.6	platform for automated security and privacy compliance. Secureframe simplifies and streamlines the process of getting
1:45.1	and staying compliant to the most rigorous global privacy and security standards like SOC2 and
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Twenty Minute VC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Twenty Minute VC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.