20VC: USV’s Andy Weissman on The Future of The VC Industry, Why USV Does Not Vote On Investment Decisions & Why VCs Should Be Invisible
Posted on 11th September 2017 by Harry
Andy Weissman is a Partner @ Union Square Ventures, one of the world’s leading VC firms with investments in Twitter, Twilio, Zynga, Soundcloud, Tumblr, Lending Club and many more. At USV, Andy sits on the boards of YouNow, ScienceExchange, Figure 1 and previous guest, CircleUp. Prior to joining USV, in 2007 he co-founded betaworks, which both created and invested in social, real-time applications and services. You can also check out Andy’s fantastic blog here.
1.) How Andy made his way into the world of startups and investing, came to found Betaworks and then made the move to USV?
2.) Andy has previously said the business “is more about luck than skill and process rather than foresight”. Why does Andy place so much emphasis on process? How has Andy seen his process evolve over the years? How does the process of an individual balance with the process of the firm?
3.) Why does USV not agree with voting as a method of investment decision making? How do Andy and USV approach reserve allocation? What model and simulators do they use to determine which companies receive follow on funding?
4.) Why does Andy believe that recycling cash from early exits is good for everyone? How has Andy found that LPs respond to this? What is the balance? What is the right amount for recycling, 110%, 120% or 130%?
5.) How does Andy view price sensitivity? To what extent does Andy agree with Peter Fenton that “valuation is a mental trap”? Has there been a time when Andy has lost a deal due to price? How has that changed his psyche and approach to the topic?
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