E12: Jamie Rhode on Why 95% of LPs Can Only Achieve a 10% IRR when the Mean Return is 50% IRR

Jamie Rhode, Principal at Verdis Investment Management, sits down with David Weisburd to discuss data-driven investing, compounding returns, Jamie's investing philosophy, and more. We're proudly sponsored by AngelList, visit https://www.angellist.com/tlp if you’re ready to level up your startup or fund. (0:00) Episode Preview (1:07) Jamie’s data driven approach (2:20) Using duration as an advantage (4:37) Jamie’s first principles approach to VC portfolio construction (7:00) The mean return in venture is 4-5x greater than the median (10:54) Jamie’s strategy and proprietary deal flow (15:30) Sponsor: AngelList (16:50) Comparing Jamie’s philosophy with past guests LPs Michael Kim and David Clark (19:25) Disciplined investing (21:20) Jamie’s red flags for GPs (22:50) Data stack: PitchBook, CB Insights, Burgiss (24:00) Ideal GPs (27:40) Compounding returns (29:40) percentage of venture investors are able to access a strategy that results in 25% compounding? (30:55) Co-investing with other LPs (32:43) Other top tier LPs shoutouts (34:05) Investing in life sciences (38:00) #OpenLP movement and transparency (40:10) Who will be the next great GPs? (44:00) Management fees (46:00) What Jamie would change about the industry