Good morning 👋
And happy Friday.
We’ve got a lot to catch up on, so let’s get right into it today.
P.S. 📋 Our first deal flow report of the year is going out this Sunday to Pro subs.
Today’s highlights
The new kids on the block
Inverse effects of making too much money
2025 predictions
Why some are skeptical on AI sales agents
TOP
Solo GPs are eating venture 👀
The rise of solo GPs is no longer a niche trend; it’s taking over the venture world.
Sequoia’s Matt Miller and Two Sigma’s Villi Iltchev are the latest to embrace the model, joining figures like Elad Gil, who raised a $1 billion fund last year.
The shift is resonating with smaller LPs, who are increasingly drawn to these streamlined operators, and some funds are seeing them as a way to back focused, differentiated managers in an era when traditional funds are struggling.
Solo GPs like Harry Stebbings (20VC) are proving that sharp branding and content-driven engagement can amplify their reach, while others, like Rex Woodbury (ex-Index) and Yuri Sagalov (ex-YC), are leveraging prior operating experience to win deals.
Why it matters:
Founder-first relationships: Many founders prefer working with solo GPs who bring operational expertise and avoid the bureaucracy of big firms. This aligns with Paul Graham’s “founder mode” philosophy that has reshaped early-stage investing.
LP strategy is evolving: In a tough fundraising market, smaller LPs are betting on solo GPs who deliver agility and better alignment with founders.
The brand game is crucial: From podcasts to personal networks, solo GPs are redefining what it means to stand out, even without the resources of a legacy firm.
What happens next:
More defections from top firms: The trend of senior GPs leaving established brands to go solo will likely accelerate as the model proves its staying power.
Heightened competition for LP dollars: Traditional firms may have to rethink their pitch as smaller LPs increasingly prioritize agility and focus over scale.
Evolving GP playbooks: Expect solo GPs to experiment further with branding, syndication, and tech-enabled efficiencies to maintain their edge in a competitive market.
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LINKS
📈 Predicting Startup Success with Data: Data-Driven VC recaps their virtual roundtable discussion on startup success prediction and the key takeaways
💡3-2-1: James Clear on how to deal with stress, forging your own reality, and learning vs achieving
⚖️ Ends & Means: Leaders must constantly examine the balance between the ends and means, as successful leadership demands harmony between the two
🔮 2025 Predictions: Tomasz Tunguz of Venture Capitalist at Theory offers predicitons for 2025 plus how his predictions for 2024 turned out
🙌 a16z Crypto’s Best of 2024: Here’s a roundup of a16zcrypto’s most popular and best-performing pieces and themes from this year—including podcasts, videos, and articles
📶 Confluence.VC 2024 Year in Review: 3,500 words on what all we learned in 2024 + our masterplan going into 2025
TWEET
HEADLINES
From AI agents to enterprise budgets, 20 VCs share their predictions on enterprise tech in 2025 (TechCrunch)
AI sales rep startups are booming. So why are VCs wary? (TechCrunch)
Playground Ventures once again lowers its flagship fund size (Pitchbook)
Accel closes $650 million for new India fund (TechCrunch)
The Year Of Humanoid Robots (Crunchbase)
MEME
COMMUNITY
Starting a private investing career shouldn’t be this hard
By yourself
❌ No investor network
❌ No formal training
❌ Build your own templates
❌ Thousands of hours wasted trying to solve problems you can’t find an answer to
❌ Capped career upside
Confluence.VC
✅ Network network of 2,500+ other VCs
✅ VC operating playbook used by thousands of other investors
✅ Best-in-class templates for every type of work you do as an investor
✅ Thousands of hours saved by relying on what has become the standard for other world-class investors
✅ Asymmetric opportunity based on the connections made with other investors already inside
We think the choice is clear.
RECS
POLL
What is the main reason you think LPs are gaining interest in solo GPs over traditional funds?
Thanks for reading this far and giving us a little bit of your attention this week.
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- Clay
