Gurley says profitable companies at IPO dropped from 90% in downturns to 5% by 2020-2021.
“Right? And so in really dark times, the percentage of companies IPOing their profitable is like 90. But by 2020, 2021, that number is 5%.”
Gurley says venture industry is structurally flawed on cyclicality and fixing it requires rewriting standard LP agreements.
“You'd have to rewrite the standard GPLP agreement, I think. I'll spend more time thinking about that later, but it is structurally flawed, I think, from a cyclicality standpoint.”