Gurley cites LP analysis showing top 10 VC funds all fell out when removing their single best performer.
“And then they took the top performer out of those funds and they all fell out of the top 10 or maybe one of them stayed.”
Gurley warns that widespread dependence on one player creates correction risk if they default on commitments.
“And that is another thing that could lead to a correction if they ever have to start defaulting on some of those commitments.”