E445: AngelList: Why Picking Winners Is the Wrong Way to Invest in Startups

Highlights:
- Why Erik believes venture capital is actually two different asset classes
- Why access may matter more than picking winners at the seed stage
- What AngelList's data reveals about startup valuations and future returns
- Why venture's power law makes portfolio concentration so important
- How the "Cathedral and Bazaar" framework explains winning VC -strategies
- Why the middle market of venture capital may face structural challenges
- How LPs can identify emerging managers with a genuine access advantage
- Why investing across vintages matters more than timing the market
- What Erik learned from an investment in Anthropic that was sold too early
- Why selling shares can damage a VC's relationship with founders
- Why individual investors struggle to access private-market value creation

Guest Bio:
Erik Syvertsen is GM of Asset Management and Chief Legal Officer at AngelList and Chairman of USVC. With more than eight years at AngelList, Erik works at the intersection of venture capital, investment management, and private-market access.

Sponsors:
Juniper Square:
Juniper Square is trusted as the operations partner by more than 2,300 private markets GPs worldwide, connecting technology, data, and fund administration services to help GPs fundraise efficiently, streamline operations, and improve the investor experience. Their unified platform centralizes data and connects LPs and GPs across every workflow, including fundraising, investor onboarding, compliance, treasury, and reporting. Today, more than $1 trillion in LP capital is managed through Juniper Square. For more information, please visit https://www.junipersquare.com/howiinvest.

AlphaSense:
AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest to learn more.

AlphaSummit Discount Code: AS26HII50

Are you interested in sponsoring the How I Invest Podcast? Please email David Weisburd at [email protected].

Stay Connected with David Weisburd:
X/Twitter: @dweisburd
LinkedIn: https://www.linkedin.com/in/dweisburd/
Weisburd Pierce: https://www.weisburdcapital.com/

Stay Connected with Erik Syvertsen:
LinkedIn:https://www.linkedin.com/in/erik-syvertsen-334b1138/

Questions or topics you want us to discuss on How I Invest? Email us at [email protected].

Disclaimer:
This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.