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David Frankel

👤 Person
708 total appearances

Appearances Over Time

Podcast Appearances

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

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.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Harry, we've got no DPI in fund three yet. We've got an LOI in a vertical SaaS business right now. LOI, we haven't got, this is not there yet. The company's done tens of millions. It's got a good valuation. It's PE, it's all PE. There are still PE players who are now looking at a vertical and going, I like that vertical. And they seem to be quite disruptive in that vertical.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Harry, we've got no DPI in fund three yet. We've got an LOI in a vertical SaaS business right now. LOI, we haven't got, this is not there yet. The company's done tens of millions. It's got a good valuation. It's PE, it's all PE. There are still PE players who are now looking at a vertical and going, I like that vertical. And they seem to be quite disruptive in that vertical.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Harry, we've got no DPI in fund three yet. We've got an LOI in a vertical SaaS business right now. LOI, we haven't got, this is not there yet. The company's done tens of millions. It's got a good valuation. It's PE, it's all PE. There are still PE players who are now looking at a vertical and going, I like that vertical. And they seem to be quite disruptive in that vertical.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

And I can tie them into XYZ company where I'm amalgamating a whole lot of companies and they're the tech play. So we've got PE in this company with us and they're going to ultimately sell to like a bigger PE and they've got a 1X Lickpref and they won't take, they'll literally shunt it into the bigger company because they think their outcome could be better.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

And I can tie them into XYZ company where I'm amalgamating a whole lot of companies and they're the tech play. So we've got PE in this company with us and they're going to ultimately sell to like a bigger PE and they've got a 1X Lickpref and they won't take, they'll literally shunt it into the bigger company because they think their outcome could be better.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

And I can tie them into XYZ company where I'm amalgamating a whole lot of companies and they're the tech play. So we've got PE in this company with us and they're going to ultimately sell to like a bigger PE and they've got a 1X Lickpref and they won't take, they'll literally shunt it into the bigger company because they think their outcome could be better.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

That's how M&A and DPI is going to start to happen now.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

That's how M&A and DPI is going to start to happen now.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

That's how M&A and DPI is going to start to happen now.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Yeah. You know, there's the saying, like, one swallow doesn't make a summer. And I kind of like think, no, no, no, no, no, no. One swallow can make a summer. So think about this optimistically. One good IPO and everyone will go, IPO markets are open again. I think pre-election in the US, IPOs are pretty much closed for now.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Yeah. You know, there's the saying, like, one swallow doesn't make a summer. And I kind of like think, no, no, no, no, no, no. One swallow can make a summer. So think about this optimistically. One good IPO and everyone will go, IPO markets are open again. I think pre-election in the US, IPOs are pretty much closed for now.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Yeah. You know, there's the saying, like, one swallow doesn't make a summer. And I kind of like think, no, no, no, no, no, no. One swallow can make a summer. So think about this optimistically. One good IPO and everyone will go, IPO markets are open again. I think pre-election in the US, IPOs are pretty much closed for now.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

I think post-election, one or two or three great IPOs, every single, you're going to have like the swarm of JP Morgan and Goldman Sachs bankers coming to tell you like, it is open. It needs to be a magnum. And Instacart won't do it. No. There are tons of four, five, six billion ones. SeatGeek's been IPO ready for two years. But that doesn't do it. No, that doesn't move the needle.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

I think post-election, one or two or three great IPOs, every single, you're going to have like the swarm of JP Morgan and Goldman Sachs bankers coming to tell you like, it is open. It needs to be a magnum. And Instacart won't do it. No. There are tons of four, five, six billion ones. SeatGeek's been IPO ready for two years. But that doesn't do it. No, that doesn't move the needle.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

I think post-election, one or two or three great IPOs, every single, you're going to have like the swarm of JP Morgan and Goldman Sachs bankers coming to tell you like, it is open. It needs to be a magnum. And Instacart won't do it. No. There are tons of four, five, six billion ones. SeatGeek's been IPO ready for two years. But that doesn't do it. No, that doesn't move the needle.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Yeah, the minute that happens, IPO will be open.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Yeah, the minute that happens, IPO will be open.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

Yeah, the minute that happens, IPO will be open.

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Investing Lessons from FC Seeding Uber, Airtable and Coupang | Why Pro Rata is the Original Sin in VC | Why Liquidity Has Died in 2024 | Why LPs are Pissed with VCs | The Hard Truth About Seed Fund Economics with David Frankel @ Founder Collective

LPs are pissed off at the moment. LPs are looking at this asset class right now, I think, and going, where is the DPI? And they did unbelievably well. And some of them are scared to sit it out. And it depends what kind of LP you are. If you're an endowment or you're like a parastatal or something, you've got to be in this asset class. And your allocation can still be tiny.