Published Mar 11, 2021

20VC: NEA's Scott Sandell on SPACS and Why Liquidity is One of the Challenges of our Time, Why We Are At An Inflection Point For Secondaries & Why There Is Nothing To Suggest The Boom Will Not Continue

Harry Stebbings engages with NEA's Scott Sandell to explore the critical role of trust in venture capital, the impact of liquidity challenges on investment strategies, and the implications of an oversupply of capital on pricing and growth in the industry.
Episode Highlights
20VC logo

Popular Clips

Episode Highlights

  • Trust

    Trust is the cornerstone of successful venture capital partnerships, as emphasized by . He reflects on a lesson from his mentor, Mark Perry, highlighting that NEA's growth was possible due to the trust within the partnership, which allows for efficient decision-making and execution 1. In today's virtual world, building trust has become more challenging due to compressed timelines and lack of in-person interactions. However, Scott notes the surprising effectiveness of virtual meetings, stating, "we've learned all the things we can do on Zoom that we didn't think were possible" 2.

       

    Decision-Making

    Effective decision-making is crucial in venture capital, and shares insights into NEA's approach. Despite the firm's growth, they maintain decision quality by involving small groups in the process, ensuring that the right people are empowered to make decisions 3. Scott explains that NEA prefers guidelines over rigid rules, allowing flexibility and judgment in investment decisions. He believes that "almost any rule that we could write down probably deserves to be broken under the right circumstances" 4.