Good morning 👋

Happy hump day.

March Madness starts in ~24 hours (the games that start to matter), I’ve watched a grand total of zero college basketball games this year, and I'm about to fill out a bracket. Will keep you posted on the results.

Today we’re stealing a clip from the TB pod about a difference in the incentive structures between PE and VC firms.

Let’s get into it.

Read online

P.S. This a16z American Dynamism video …. so sick.

Today’s highlights

  • Comparing the threat of leaving in VC vs. PE

  • Thoughts on the Cendana model

  • Rippling vs. Deel updates

  • Rex Woodburry (Daybreak) announces fund I

TOP
VC vs. PE talent wars

We’ve written about this time and time again, and there is a confluence of events creating more turnover for venture firms today:

  1. It has become a LOT easier to set up a new venture fund (compared to the cost and complexities to setting up a PE vehicle)

  2. More of winning comes down to individual reputation instead of firm reputation (at least for most deals)

  3. Compressed carry is a temporary solution to attracting junior talent, but it works as a negative on retainment of that talent

Here are some good points that Logan brings up in this clip:

  • PE people can’t really leave and compete

  • Infrastructure and dollars create real golden handcuffs

  • Venture is beholden to individuals

  • Individuals can walk out the door and compete

  • GC is moving away from carry and towards cash-based bonuses

  • As the incentive structure changes, how do you retain the quality of people?

Listen more: https://x.com/tbpn/status/1901764809663902068

COMMUNITY
The OS for private investors 🕹

Good venture investors need to have:

  • Good background knowledge and an understanding of how venture dynamics work

  • A source of good deal flow so that you see founders first

  • An elite investor network that you can share notes, deals, and other information with

  • Mental frameworks to understand company building, scale, and what makes a good vs. great investment

  • Connections to other high-quality people that become future co-workers or portfolio company employees

That’s why we built this.

2,500 other investors from places like Bessemer, Insight, Accel, and Founders Fund already use it, and we think you should too.

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TWEET

HEADLINES

  • Rippling declares war on Deel with lawsuit alleging spy scheme (Pitchbook)

  • Google buys Wiz for $32B to beef up in cloud security (TechCrunch)

  • Small Investor Group Scores 88-Fold Return in Poppi Sale (WSJ)

  • Rex Woodbury’s Daybreak Ventures unveils $33 million first fund (Fortune)

MEME

LINKS

🇺🇸 a16z’s Recommendations for the National AI Action Plan: a16z offers the White House Office of Science and Technology Policy three suggestions on how the U.S.A. can implement a competitive agenda that will enable it to continue to lead the world in AI development

🤔 How to Think About Valuations: Yoni Rechtman believes when working on a round together, you need to have alignment with each of four factors

💨 My Weirdest A/B Test Blew Everyone’s Mind: Marketing Ideas had a form completion rate jump by 25% by using this simple tactic

☑️ The Top 100 Gen AI Consumer Apps: Andreessen Horowitz shares its bi-annual ranking of the top 50 AI-first web products and top 50 AI-first mobile apps

🔮 10 Predictions for the Future of the Finance Tech Stack: Mostly Metrics highlights the data from its 2025 tech stack survey

RECS

  • mainstreet memos: Some of the more interesting stories across VC & PE

  • Pitch Club: Early-stage hiring and funding updates in your inbox

MEMOS

  • Chima: Interoperability for AI agents

  • Superpower: The all-in-one health membership for elite performers

  • Documenso: The DocuSign killer

MARKET MAPS

Thanks for reading this far and giving us a little bit of your attention this week.

Feel free to unsubscribe whenever this stops becoming valuable to you.

- Clay
(Founder @ Confluence.VC | GP @ Outlaw)

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