“High bandwidth” is being replaced with “safe bets”

Odin himself - with all the wisdom accumulated after 9 days and 9 nights on Iggdrasil - could not have put this case better. Dan G. - an insightful analysis, as usual.

“Tech beta” and “kingmaking” are real strategies. Oleg Loukhton and I are seeing it in our corner of the market, and it is increasingly becoming obvious that “high bandwidth” is being replaced with “safe bets”. Some of the rounds in legal tech are essentially inexplicable (and some of the genuinely innovative ideas that go unfunded further corroborate the thesis in the article).

Improvement to the current state may require the emergence of a greater number of “high-bandwidth” specialists with links to the “mega-funds”, to surface more fundable ideas and dispel the notion of “only four or five companies per vintage actually matter”. This makes the AUM growth strategy more sustainable medium- to long-term.