Evidence receipt / belief
Published · transcript-backedSebastian Mallaby: belief
9 Feb 2022 Conversations with Tyler Sebastian Mallaby on Venture Capital
“I think the point here is that, any time we’re dealing with alternative asset managers — whether it’s hedge funds or venture capital — it’s the skill that you need.”
Source trail
Everything needed to verify it.
- Speaker
- Sebastian Mallaby
- Attribution
- Verified speaker
- Claim type
- belief
- Recorded
- 9 Feb 2022
- Publisher
- Conversations with Tyler
Transcript context
…Why does it continue? Why doesn’t capital just flow into the sector and bid down the returns? Well, maybe that’s what we’ve been seeing just in the last three years or so, with enormous amounts of money coming in during the pandemic. And quite possibly there will be a correction. You’re asking, I guess, a more subtle question about whether, on a sustained basis, money would flow in and bid away the returns. I think the point here is that, any time we’re dealing with alternative asset managers — whether it’s hedge funds or venture capital — it’s the skill that you need. The money may be limitless, but the skills and the connections in Silicon Valley and what have you — that is not unlimited. Skill can continue to generate good returns. In that underlying mental model, the excess returns can stay more or less forever. More capital coming in won’t bid down the returns much?…
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