The venture capital model is facing a structural shift where limited partners will likely reduce their allocations due to higher interest rates and lower comparative alpha.

“I do think it will impact how limited partners have an appetite to give all of us or you guys folks that are that are accepting LP checks more money because the alternative universe is more liquid it's less volatile and it has roughly the same amount of return”

A venture-backed startup needs to be run with much greater capital efficiency because the era of abundant cheap capital is over.

“on a daily basis it means there's gonna be less companies that are going to get funded but more importantly it's going to be less LP money going into Venture and there's going to be less Capital available to fund startups in aggregate by significant amount”

Venture fund managers must demonstrate a significant and clear competitive edge to continue securing commitments from limited partners.

“You have to have a massive Competitive Edge and a differentiate you have to be differentiated in some very credible believable way and they're telling me the same thing they're cutting two funds out of their 20 and then they're cutting their commit commitments to the weaker ones of the other 18.”