David Rosenthal: belief

Transcript context

…Totally. You end up with this fascinating dichotomy. It's the same thing that's happening in the media ecosystem where there is no more middle. If you are going to be one of the few who succeed and you're big, you have to have a big ass cost structure. Andreessen Horowitz is the New York Times of venture capital. Simultaneously, it will be true that there's this long tail of people. They're like, F that big cost structure. I'm going to start kindergarten ventures and take my small amount of capital and no team, and I'm going to play a completely different super niche game. There is some room in the middle, but there's not the room that there used to be in the middle. Yup. I think the industry has found that out, painfully, over the last 10 years. Yeah, but this really interesting thing of like, it took a long time. It took 30 years or 40 years of venture capital as a profession for the arbitrage of profits to go away from general partners.…

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