20VC: Raising A $1.35Bn Fund I, The Emerging Secondary Opportunity For Early Stage Managers and Founders & What It Takes To Win The Best Growth Deals Today with Ravi Viswanathan, Founder & Managing Partner @ NewView Capital
Ravi Viswanathan, Founder & Managing Partner of NewView Capital, reveals the intricacies of raising a $1.35 billion fund, shares his strategic perspectives on growth investments, secondary market opportunities, and balancing private versus public pathways, while emphasizing the pivotal role of relationships and trust in the competitive venture capital landscape.
Ravi Viswanathan addresses the challenges posed by the massive influx of capital in the venture ecosystem, echoing Bill Gurley's concerns. He acknowledges that while this abundance can degrade returns, it also fuels innovation and the creation of new companies. Ravi emphasizes the importance of differentiation and visibility to succeed in this competitive landscape 1.
Any time you have an influx of capital into any asset class, just a sheer volume of capital coming in, much more by a multiple, usually what you see is returns degrade.
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He also discusses the dual impact of private equity firms entering the venture space, noting their potential to both invest in and acquire companies, which can be beneficial if managed carefully 2.
Private vs. Public
The debate over whether companies should stay private longer or go public is a strategic consideration for many. Ravi believes that remaining private can be advantageous if it allows companies to refine their metrics and governance structures. However, he warns against staying private solely for valuation arbitrage, as it can hinder liquidity for investors and employees 3.
Companies staying private longer because they want to get their metrics into best in class, they want to get their corporate governance, their boards in shape to be a public company. That's a great reason.
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He highlights the role of private equity firms in providing liquidity while allowing companies to remain private, thus offering a solution to the liquidity challenge 3.
