In this episode of Turpentine VC, Tomasz Tunguz, General Partner at Theory Ventures, joins Erik Torenberg to discuss the Theory Ventures model, the coming contraction in investable VC dollars, the parallels between PE and VC, and much more. If you’re looking for an ERP platform, check out our sponsor, NetSuite: http://netsuite.com/turpentine --- Check out Erik's new show Request for Startups featuring a rotating cast of founders and investors (including Dan) sharing their requests for startups they want to exist in the world, and also their stories of navigating the idea maze in different sectors so founders don’t have to reinvent the wheel anymore. The first episode is out now - we over better dating apps, references as a service, and WeWork for productivity Watch and Subscribe on Substack: https://requestforstartups.substack.com/p/receipt-based-dating-reference-checks Apple: https://podcasts.apple.com/us/podcast/request-for-startups-with-erik-torenberg/id1728659822 Spotify:https://open.spotify.com/show/739L1LR32QI2XyoZlRh5nv --- We're hiring across the board at Turpentine and for Erik's personal team on other projects he's incubating. He's hiring a Chief of Staff, EA, Head of Special Projects, Investment Associate, and more. For a list of JDs, check out: eriktorenberg.com. --- SPONSOR: NETSUITE | SHOPIFY NetSuite has 25 years of providing financial software for all your business needs. More than 36,000 businesses have already upgraded to NetSuite by Oracle, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you’re looking for an ERP platform head to NetSuite http://netsuite.com/turpentine and download your own customized KPI checklist. Shopify is the global commerce platform that helps you sell at every stage of your business. Shopify powers 10% of ALL eCommerce in the US. And Shopify's the global force behind Allbirds, Rothy's, and Brooklinen, and 1,000,000s of other entrepreneurs across 175 countries.From their all-in-one e-commerce platform, to their in-person POS system – wherever and whatever you're selling, Shopify's got you covered. With free Shopify Magic, sell more with less effort by whipping up captivating content that converts – from blog posts to product descriptions using AI. Sign up for $1/month trial period: https://shopify.com/momentofzen --- Join our free newsletter to get Erik's top 3 insights from each episode: https://turpentinevc.substack.com/ --- RELATED SHOWS: The Limited Partner If you like Turpentine VC, check out our show The Limited Partner with David Weisburd, where David talks to the investors behind the investors: https://link.chtbl.com/thelimitedpartner --- X / TWITTER: @ttunguz (Tom) @Theoryvc (Theory Ventures) @eriktorenberg (Erik) @cjgustafson222 (CJ) @TurpentineVC --- TIMESTAMPS: (00:00) Episode Preview (01:02) The Theory Behind Theory Ventures (03:14) The Coming Drop in VC Dollars (05:23) Advice for Emerging Managers (07:06) VC Differentation (08:29) How to Play AI as a VC (11:02) Sectors/Technologies Tom Finds Appealing (12:47) Biggest Data Trends in VC (16:59) How Theory Ventures Differentiates Itself (18:13) Replacing Founders (22:54) The Journey of a Founder to IPO (25:12) Planning for Future Business Needs (26:56) When to Hire a VP of Finance or CFO (28:15) Qualities of a Great CFO (31:14) Sponsor - Netsuite and Shopify (34:13) The Universe of LPs (36:56) The Future of Multi-Stage Venture Firms (39:02) The Future of Venture Capital Industry (41:45) Tom's Economic Outlook (43:56) Multiple Contraction in SaaS and FinTech (46:45) Incredible Time for Young, Ambitious People (48:23) The Future of Theory Ventures (51:12) The Future of Accelerators ---