20VC: Why VC is a Ponzi Scheme Today | Why Most VCs are Bankers | Why Big VCs Ruin Startups | Why Incentives in VC are Broken | Why American Dynamism is a Tool for VCs to Raise Money with Nick Chirls, Asylum Ventures

1950.237 - 1973.9 Nick Chirls

Actually, it's very simple. What is the business model for large venture banks? Deployment. Yeah. It's raise as much money as possible. Get that money out the door as soon as possible. And then raise as much money again and rinse and repeat. Your junior partner at these big firms, a VP at Goldman equivalent. They are compensated and promoted based on money velocity, not money returns.