The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch - 20VC: Bill Gurley and Howard Marks: What Happened In 2020? What Can We Expect Looking Forward to 2021?

20VC: Bill Gurley and Howard Marks: What Happened In 2020? What Can We Expect Looking Forward to 2021?

01/04/21 • 41 min

3 Listeners

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

Howard Marks is co-chairman and co-founder of Oaktree Capital Management, a leading investment firm with more than $120 billion in assets. Prior to founding Oaktree, Howard spent 10 years at The TCW Group, where he was responsible for investments in distressed debt, high yield bonds, and convertible securities. Howard has also written two books, most recently Mastering the Market Cycle: Getting the Odds on Your Side, and it was Warren Buffet who said, “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.”

Bill Gurley is a General Partner @ Benchmark Capital, one of the most successful funds of the last decade with a portfolio including the likes of Uber, Twitter, Dropbox, WeWork, Snapchat, StitchFix, eBay and many many more. As for Bill, widely recognised as one of the greats of our time having worked with the likes of GrubHub, NextDoor, Uber, OpenTable, Stitch Fix and Zillow. Prior to Benchmark, Bill was a partner with Hummer Winblad Venture Partners. Before entering venture, Bill spent four years on Wall Street as a top-ranked research analyst, including three years at CS First Boston.

In Today’s Episode You Will Learn:

1.) In March Ray Dalio stated we would be entering a "global recession", how do Howard and Bill feel about this statement? How does today's environment remind Howard and Bill of 2010/11? What is similar? What is different? How does Bill think about investing through cycles?

2.) How does Bill think about investing through cycles? What have Bill's lessons been from seeing many venture vintages on LP performance across cycles? How does Howard think about investing through cycles from a distressed debt perspective? What have his lessons been from Oaktree's performance over the years?

3.) Do Howard and Bill agree we will not see interest rates go anywhere for the next 3-5 years? What is the impact of this sustained low-interest rate environment? What could be done that would see interest rates increase in the future? How does Bill believe this will impact the supply of LP dollars in venture?

4.) How do Bill and Howard evaluate the state of the public markets today? Why does Howard believe that FOMO has really taken effect? How does Bill think about network effects and the laws of compounding with regards to public companies?

5.) Do Howard and Bill agree we are seeing a retreat from globalisation? What are the core impacts of this retreat? Why is Bill so concerned about "regulatory capture"? Why does Bill fear that today, "Washington is for sale"? What would he like to see change?

Item’s Mentioned In Today’s Episode

Howard’s Favourite Book: Across That Bridge: A Vision for Change and the Future of America

Bill’s Favourite Book: How Innovation Works

As always you can follow Harry and The Twenty Minute VC on Twitter here!

Likewise, you can follow Harry on Instagram here for all things 20VC.

In Today’s Episode You Will Learn:

Item’s Mentioned In Today’s Episode

Howard’s Favourite Book: Across That Bridge: A Vision for Change and the Future of America

Bill’s Favourite Book: How Innovation Works

As always you can follow Harry and The Twenty Minute VC on Twitter here!

Likewise, you can follow Harry on Instagram here for all things 20VC.

Previous Episode

undefined - 20VC: Lessons From Working with Bill Gates, How To Lead Without Authority and The Difference Between Leadership and Management & How Fundraising Changes In A COVID World with Quentin Clark, Managing Director @ General Catalyst

20VC: Lessons From Working with Bill Gates, How To Lead Without Authority and The Difference Between Leadership and Management & How Fundraising Changes In A COVID World with Quentin Clark, Managing Director @ General Catalyst

Quentin Clark is a Managing Director @ General Catalyst, one of the most prominent firms of the last decade with a portfolio including Stripe, Airbnb, Snap, Anduril, Deliveroo and Cazoo to name a few. As for Quentin, at GC he has led deals in the likes of Kernel, Coda, Commure just to name a few. Before entering the world of venture Quentin was the CTO @ Dropbox and before that he was the Chief Business Officer @ SAP. Finally, before SAP, Quentin spent an incredible 20 years at Microsoft in a variety of different roles play a key part in their hyper-growth.

In Today’s Episode You Will Learn:

1.) How Quentin made his way from CTO @ Dropbox and 20 years at Microsoft to being an MD with General Catalyst today?

2.) What were Quentin's biggest management takeaways from his 20 years at Microsoft? What is his favourite story about working with Bill Gates? How does Quentin think about the art of delegation? How does Quentin differentiate between leadership and management?

3.) How does Quentin believe the world of fundraising has changed with COVID? How does Quentin build relationships of trust in these compressed fundraising timelines? What works? What does not work? How can you really build that relationship off Zoom? How does this change the fundraising landscape moving forward?

4.) What does Quentin mean when he says he likes to "lead without authority"? How does that translate into his management style? How does Quentin evaluate his style of board membership? How does Quentin know whether to wear the investor vs the operator hat on the board?

5.) Does Quentin believe we are really moving the needle in terms of the projects that venture is funding today? What would Quentin like to see more of? What would Quentin like to change about the world of venture? How does Quentin evaluate market timing risk when investing?

Item’s Mentioned In Today’s Episode

Quentin’s Favourite Book: Stranger in a Strange Land

Quentin's Most Recent Investment: Sprout Therapy

As always you can follow Harry and The Twenty Minute VC on Twitter here!

Next Episode

undefined - 20VC: Twitter Co-Founder Biz Stone on The 3 Stages of Wealth, The Return To Twitter in 2017 and the Associated Missions and Challenges & Why Silicon Valley is not an "Insiders Only" Universe?

20VC: Twitter Co-Founder Biz Stone on The 3 Stages of Wealth, The Return To Twitter in 2017 and the Associated Missions and Challenges & Why Silicon Valley is not an "Insiders Only" Universe?

Biz Stone is best known as the Co-Founder of Twitter and Medium. Biz is also an investor in the likes of Slack, Square, Intercom, Beyond Meat and Blue Bottle Coffee. Biz also co-founded Jelly, a "human in the loop" AI search service, which was acquired by Pinterest. Due to his many successes, Biz has been recognized as INC Magazine Entrepreneur of the Decade and one of TIME's 100 Most Influential People in the World.

In Today’s Episode You Will Learn:

1.) How did Biz make his way into the world of startups and come to found Odeo/Twitter one day on a car trip with Ev Williams?

2.) How does Biz evaluate his relationship to money? How does Biz think about teaching his son the value of money? What does Biz mean when he says wealth 'accentuates your current self"? How did Biz get off the treadmill of always wanting and chasing more?

3.) How does Biz think about insecurity and self-doubt? How does Biz approach saying no? How does he get comfortable with not always being Mr Popular? What is so challenging here? How does Biz feel about founding tieing their identities to their company?

4.) Why did Biz come back to Twitter in 2017? With hindsight, what would he have done differently if he were to return again? What were the biggest challenges when he arrived? Why was internal morale low? What did he and Jack do to increase it? What worked? What did not?

5.) Why does Biz not feel Silicon Valley is an "insider-only" universe? Why does Biz feel Silicon Valley is a mindset? How does Biz think about the decentralisation of talent moving forward? How does Biz compare the UK to the US startup ecosystem? What is worse in the UK?

Item’s Mentioned In Today’s Episode

Biz's Favourite Book: Emergence: The Connected Lives of Ants, Brains, Cities and Software

As always you can follow Harry and The Twenty Minute VC on Twitter here!

Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.