Breaking the Fund Size Myth with VenCap: Why Venture Capital Performance Hinges on Fit, Not Volume

In this interview with David Clark, Chief Investment Officer at VenCap International, we challenge one of the most entrenched assumptions in venture capital: that fund size is a reliable measure of success.

From emerging managers and public capital to the power law and what’s really ahead for VC, this conversation reframes how institutional investors should think about long-term performance in the asset class.

Rather than fixating on whether a fund is small, medium, or large, David explains why LPs should instead focus on the alignment between fund size, ownership strategy, and the potential to generate fund-returning outcomes. He also weighs in on the generalist vs. specialist debate, arguing that what truly matters is a manager’s consistent ability to back top 1% companies—regardless of thematic focus.

As the industry adjusts to a tougher fundraising environment and increasing market bifurcation, David offers a powerful reminder: venture capital is a 15-year game. Long-term success depends on resilience, discipline, and selecting managers with a clear edge in navigating the power-law dynamics of early-stage investing.

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