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@nikunj (2026-05-03) claims many venture funds are focusing on capping…
Brief
@nikunj (posted 2026-05-03) argues too many funds prioritize downside protection—relying on eventual acquisition by a 'big token factory'—instead of chasing outsized returns. He says that approach won't deliver 5–10x fund returns, attributes it to AUM-maxxing incentives ('deploy baby deploy'), and urges spending time on impactful work with committed partners.
Why it matters
@nikunj (2026-05-03) claims many venture funds are focusing on capping downside—expecting "big token factory" acquirers—rather than maximizing upside.
Key details
- He argues that that downside-first mindset won't produce the 5–10x returns needed for a top-performing fund.
- He links the behavior to incentives shifting to AUM-maxxing ('deploy baby deploy') and urges using time wisely on meaningful work and reliable partners.