David Frankel

as well. And the pref stack, like Perry Pesu feels like something of the past. There's a real pref stack coming.

as well. And the pref stack, like Perry Pesu feels like something of the past. There's a real pref stack coming.

as well. And the pref stack, like Perry Pesu feels like something of the past. There's a real pref stack coming.

Well, the listed markets change completely. So if you look at SAS multiples in 21, 20, where that was 20X, and then you look at those SAS multiples as five, six X, that trickles down. So later stage investors that invested in private at a billion and expected that rule of 40 to be at least profits and huge growth all the time, and that hasn't materialized.

Well, the listed markets change completely. So if you look at SAS multiples in 21, 20, where that was 20X, and then you look at those SAS multiples as five, six X, that trickles down. So later stage investors that invested in private at a billion and expected that rule of 40 to be at least profits and huge growth all the time, and that hasn't materialized.

Well, the listed markets change completely. So if you look at SAS multiples in 21, 20, where that was 20X, and then you look at those SAS multiples as five, six X, that trickles down. So later stage investors that invested in private at a billion and expected that rule of 40 to be at least profits and huge growth all the time, and that hasn't materialized.

They're looking at those same companies who are going out for top-up rounds and they're going, why would I top out at the last valuation? Or they're saying, again, go to the market, see what the market will bear. We've seen down rounds in companies that got valued enormously, hugely. Goes back to at any point, you own your own destiny by minding your monthly burn.

They're looking at those same companies who are going out for top-up rounds and they're going, why would I top out at the last valuation? Or they're saying, again, go to the market, see what the market will bear. We've seen down rounds in companies that got valued enormously, hugely. Goes back to at any point, you own your own destiny by minding your monthly burn.

They're looking at those same companies who are going out for top-up rounds and they're going, why would I top out at the last valuation? Or they're saying, again, go to the market, see what the market will bear. We've seen down rounds in companies that got valued enormously, hugely. Goes back to at any point, you own your own destiny by minding your monthly burn.

I think that DPI could be dead, right? And let me clarify that. But I think a lot of LPs look at 2018 plus funds and they go, where's the DPI? And I think that what happened there was a perfect storm. Our fund three is a 2018 vintage, no DPI yet. And what happened is if you look at fund one, fund two, five, six years in, we were giving DPI.

I think that DPI could be dead, right? And let me clarify that. But I think a lot of LPs look at 2018 plus funds and they go, where's the DPI? And I think that what happened there was a perfect storm. Our fund three is a 2018 vintage, no DPI yet. And what happened is if you look at fund one, fund two, five, six years in, we were giving DPI.

I think that DPI could be dead, right? And let me clarify that. But I think a lot of LPs look at 2018 plus funds and they go, where's the DPI? And I think that what happened there was a perfect storm. Our fund three is a 2018 vintage, no DPI yet. And what happened is if you look at fund one, fund two, five, six years in, we were giving DPI.

It wasn't even our biggest hitters, but we were giving through companies like Cruise or Desktop Automation that you've never, Desktop Metal in fund two, right? Through companies like Datalot and InfoScout, we were already giving significant DPI. That's way before we got to Uber, Trade Desk, Coupang. And we haven't given DPI, by the way, at all in companies like SeatGeek, Airtable.

It wasn't even our biggest hitters, but we were giving through companies like Cruise or Desktop Automation that you've never, Desktop Metal in fund two, right? Through companies like Datalot and InfoScout, we were already giving significant DPI. That's way before we got to Uber, Trade Desk, Coupang. And we haven't given DPI, by the way, at all in companies like SeatGeek, Airtable.

It wasn't even our biggest hitters, but we were giving through companies like Cruise or Desktop Automation that you've never, Desktop Metal in fund two, right? Through companies like Datalot and InfoScout, we were already giving significant DPI. That's way before we got to Uber, Trade Desk, Coupang. And we haven't given DPI, by the way, at all in companies like SeatGeek, Airtable.

But you look at 2018 plus funds, and the problem is it was this perfect storm. So we were preparing, we were getting involved in companies that had lots of potential. And then 2019, 2020, Zerp comes along, day trading at home over COVID. And 10 on 40, 10 on 40, 20 on 80. Tiger looks at A16Z and goes, you know, they have 10 on 40, we'll do the 20 on 80. SoftBank. And that was the apotheosis.

But you look at 2018 plus funds, and the problem is it was this perfect storm. So we were preparing, we were getting involved in companies that had lots of potential. And then 2019, 2020, Zerp comes along, day trading at home over COVID. And 10 on 40, 10 on 40, 20 on 80. Tiger looks at A16Z and goes, you know, they have 10 on 40, we'll do the 20 on 80. SoftBank. And that was the apotheosis.

But you look at 2018 plus funds, and the problem is it was this perfect storm. So we were preparing, we were getting involved in companies that had lots of potential. And then 2019, 2020, Zerp comes along, day trading at home over COVID. And 10 on 40, 10 on 40, 20 on 80. Tiger looks at A16Z and goes, you know, they have 10 on 40, we'll do the 20 on 80. SoftBank. And that was the apotheosis.

But at every stage, the money was just going out like crazy. Did we do founders favors? Like, no, no, no. That's the 2018 plus vintage. So LPs at every stage, I think, are looking at this thought for LPs. And they still want to get into good funds. So they're not being as direct with the managers. But they're looking at this and going like, show me the DPI.

But at every stage, the money was just going out like crazy. Did we do founders favors? Like, no, no, no. That's the 2018 plus vintage. So LPs at every stage, I think, are looking at this thought for LPs. And they still want to get into good funds. So they're not being as direct with the managers. But they're looking at this and going like, show me the DPI.