Michael Kim

This Week In Startups is made possible by: Digital Ocean - do.co/twist Agree.com - agree.com Every.io - every.io. Today's show: How many startups matter in tech? Fewer than you think. That's why venture capitalists are tripping over themselves to get onto their cap tables, no matter the cost. Why? Footwork's Nikhil Basu Trivedi argues that the Valley has never been more "power-law-pilled" than it is today. Basu Trivedi joined Cendana Capital's Michael Kim and TWiST's Alex Wilhelm to go deep on secondary markets, the state of startup M&A, why the SaaSpocalypse may be temporary, and what could trigger a retrenchment of the AI trade. It's Wednesday, so it's time for our venture capital roundtable to go deep on how VCs are investing today, and where on the horizon they have their eyes fixed! Guest links: Nikhil Basu Trivedi https://x.com/nbt Footwork https://www.footwork.vc/ Michael Kim https://x.com/MKRocks Cendana Capital https://www.cendanacapital.com/ Show links: The USVC-Anduril blowup https://x.com/ankurnagpal/status/2072701195714531398 Kline Hill Cendana Partners https://www.secondariesinvestor.com/kline-hill-and-cendana-raise-400m-for-second-vc-secondaries-fund/ GPTZero's exit https://gptzero.me/news/preserving-whats-human/ Salesforce buys Fin https://www.salesforce.com/news/press-releases/2026/06/15/salesforce-signs-definitive-agreement-to-acquire-fin/ Vercel buys Better Auth https://vercel.com/blog/vercel-acquires-better-auth Figma buys Bud https://techcrunch.com/2026/07/07/figma-acquires-team-behind-a-vibe-coding-app/ Protoge https://withprotege.ai/ Windborne https://windbornesystems.com/ Etched https://www.etched.com/ Lovable's reported raise https://sifted.eu/articles/lovable-300m-13-2bn-valuation Josh Browder https://x.com/Joshuabrowder Timestamps: 0:00 Introduction: Nikhil Basu Trivedi (Footwork) & Michael Kim (Cendana Capital) 1:59 The Anduril vs. USVC secondary market blowup 4:08 Why Silicon Valley is 'power-law-pilled' 8:23 Plaud: If your work depends on conversations — interviews, meetings, calls — you need a Plaud NotePin. You can check it out at https://Plaud.ai/twist and use code TWIST for 10% off! 9:37 Information asymmetry in the secondary markets 9:45 Every.io — For all of your incorporation, banking, payroll, benefits, accounting, taxes or other back-office administration needs, visit https://every.io 15:02 Is SPV fraud smoke or fire? 16:32 Superhuman acquires GPTZero 19:54 Agree.com - Stop chasing invoices and automate your entire contract-to-cash stack. Go to https://agree.com and tell them Jason sent you to get 50% off for life! 21:10 The M&A wave 27:19 The SaaSpocalypse debate 29:59 DigitalOcean - Head to https://do.co/twist to start building on DigitalOcean's AI-Native Cloud today — and cut your AI workload costs by up to 50%. 30:44 Data's moment in the energy → compute → data loop 35:01 Where will AI value accrue? 40:04 What could cause an AI correction? 42:17 Why some companies are "too big to miss" 46:23 China's possible open-weight model ban 53:28 Young founders: Etched, Thiel Fellows, Z Fellows, Neo 55:33 Portfolio spotlight: WindBorne's weather balloons and data moat 58:47 Michael's favorite fund manager: Josh Browder Subscribe to the TWiST500 newsletter: https://ticker.thisweekinstartups.com Check out the TWIST500: https://www.twist500.com Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp Follow Lon: X: https://x.com/lons Follow Alex: X: https://x.com/alex LinkedIn: ⁠https://www.linkedin.com/in/alexwilhelm Follow Jason: X: https://twitter.com/Jason LinkedIn: https://www.linkedin.com/in/jasoncalacanis Check out all our partner offers: https://partners.launch.co/ Great TWIST interviews: Will Guidara, Eoghan McCabe, Steve Huffman, Brian Chesky, Bob Moesta, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland Check out Jason's suite of newsletters: https://substack.com/@calacanis Follow TWiST: Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin Instagram: https://www.instagram.com/thisweekinstartups TikTok: https://www.tiktok.com/@thisweekinstartups Substack: https://twistartups.substack.com

Nikhil Basu Trivedi

Co-Founder and General Partner

FootworkShasta Ventures

Michael Kim

Founder and Managing Partner

Cendana Capital

Michael Kim is the Founder of Cendana Capital, a fund of funds that makes anchor investments in very early stage VC funds. We talk characteristics of the best investors, how Cendana does diligence on fund managers, portfolio construction best practices, Michael’s “60x rule”, and why high ownership to fund size is the main driver of returns. We also get in to how VCs are using AI, the competition between Seed and multi-stage investors, why US endowments are under siege, and how secondaries are driving most early stage venture returns today. Michael also opens up about the early days of starting Cendana, the 18 month grind raising Cendana Fund 1, the day he almost died, and ranking in the top 2% globally in Call of Duty. Special thanks to Roger Ehrenberg, Kevin Hartz, Semil Shah, Jeff Claviar, Beezer Clarkson, Jack Altman, Jeff Morris Jr, Sheel Mohnot, Nichole Wischoff, Ted Alling, and Rick Zullo for their help putting this episode together. Thanks to Bolt for supporting this episode. Help them break a world record for the largest hackathon (up to $1m in prizes): https://bit.ly/ThePeelBoltHackathon Timestamps: (4:24) The day Michael almost died (5:10) Call of Duty & video games (9:34) Hiring @ Cendana (10:31) How Cendana uses structured and unstructured data (16:51) How VCs are using AI (19:55) Why secondaries are driving most early stage venture returns (22:01) Deciding when to sell secondaries (24:28) Best performing venture funds ever (27:26) The best VCs have amazing access to the best founders (33:42) Why Cendana backs Solo GPs (35:57) How to invest over time and hype cycles (41:35) Why multi-stage firms are investing earlier (44:45) Cendana’s current thesis: High ownership % to fund size (45:51) Why Cendana started backing non-lead VCs (48:41) How Cendana does diligence on fund managers (52:22) VC NPS Scores and Ron Conway’s Silver Bullet (53:49) Good vs bad new VC firm strategies (56:36) Determining defensibility of a strategy (57:57) “Messy middle” software buyout fund (1:03:25) Portfolio construction best practice (1:08:11) Michael’s 60x Rule (1:14:28) How Seed funds compete with multi-stage funds (1:20:05) Should you collect logos writing small checks? (1:21:07) Becoming an LP for the city of SF (1:24:42) Taking 18+ months to raise Cendana Fund 1 in the GFC (1:26:48) Warehousing the first Cendana Fund 1 investments (1:29:56) How to do a first close (1:34:29) Why it’s hard to kill a VC firm (1:37:00) What happens to ZIRP tourist fund managers (1:40:22) How to raise a Fund 2 or 3 today (1:42:07) “US endowments are under siege” (1:44:55) What the best GP LP relationships look like (1:46:41) What Fund of Funds get wrong (1:50:43) The three most interesting trends in venture today Referenced Check out Cendana https://www.cendanacapital.com/ Deep Checks https://www.deepchecks.vc/ Prior episode with Eric at Bolt https://www.youtube.com/watch?v=7Q6n1vqUrF4 Follow Michael Twitter: https://x.com/MKRocks LinkedIn: https://www.linkedin.com/in/michael-kim-cendana-capital/ Follow Turner Twitter: https://twitter.com/TurnerNovak LinkedIn: https://www.linkedin.com/in/turnernovak Subscribe to my newsletter to get every episode + the transcript in your inbox every week: https://www.thespl.it/

Michael Kim

Founder and Managing Partner

Cendana Capital

This Week in Startups is brought to you by… LinkedIn Marketing. To redeem a $100 LinkedIn ad credit and launch your first campaign, go to http://www.linkedin.com/thisweekinstartups Squarespace. Turn your idea into a new website! Go to http://www.Squarespace.com/TWIST for a free trial. When you’re ready to launch, use offer code TWIST to save 10% off your first purchase of a website or domain. Lemon.io - Hire pre-vetted remote developers, and get 15% off your first 4 weeks of developer time at https://www.Lemon.io/twist * Today’s show: Cendana’s Michael Kim joins Jason for a deep dive on fund of funds (3:32), how to examine alpha, beta, and quality indices in early-stage investing (28:38), current market trends, future startup outlook (45:11), and more! * Timestamps: (0:00) Michael Kim joins Jason. (3:32) Overview of Fund of Funds, their Strengths and “Achilles heel”. (7:01) Attraction factors for investors in pre-seed and seed startups. (10:42) LinkedIn Marketing -  Get a $100 LinkedIn ad credit at http://www.linkedin.com/thisweekinstartups (12:04) The rise and definition of “micro VCs” with insights by Michael Kim. (15:16) How the early seed stage carved a niche and its growing appeal to LPs. (22:07) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at http://www.Squarespace.com/TWIST (23:12) Fund enablers and the importance of “consistent returns”. (28:38) Examining alpha, beta, and quality indices in early-stage investing. (34:21) Lemon.io - Get 15% off your first 4 weeks of developer time at https://www.Lemon.io/twist (35:29) The significance of portfolio management as networks and building a ‘why' for founders to pick you as an investor. (41:25) The value and longevity of investor networks. (45:11) Current market trends, future startup outlook. (48:08) Things have shifted and Michael explains why seed is the new series-A and pre-seed is the new seed. (52:10) Demographics of founders seeking investment. * LINKS Check out Cendana Capital: https://www.cendanacapital.com/ Watch other episodes with Micheal Kim: E1075: https://www.youtube.com/watch?v=SSOhe-FnTJE E1879: https://youtu.be/1Dcu5BfnE_c?feature=shared Check out the Liquidity Podcast: LiquidityPod.com * Follow Michael: X: https://twitter.com/MKRocks LinkedIn: https://www.linkedin.com/in/michael-kim-cendana-capital/ * Follow Jason: X: ⁠https://twitter.com/jason⁠ Instagram: ⁠https://www.instagram.com/jason⁠ LinkedIn: ⁠https://www.linkedin.com/in/jasoncalacanis * Thank you to our partners: (10:42) LinkedIn Marketing -  Get a $100 LinkedIn ad credit at http://www.linkedin.com/thisweekinstartups (22:07) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at http://www.Squarespace.com/TWIST (34:21) Lemon.io - Get 15% off your first 4 weeks of developer time at https://www.Lemon.io/twist * Check out the Launch Accelerator: https://launchaccelerator.co * Check out Founder University: https://www.founder.university * Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp * Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland * Check out Jason’s suite of newsletters: https://substack.com/@calacanis * Follow TWiST: Substack: https://twistartups.substack.com Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin Instagram: https://www.instagram.com/thisweekinstartups TikTok: https://www.tiktok.com/@thisweekinstartups * Subscribe to the Founder University Podcast: https://www.founder.university/podcast

Michael Kim

Founder and Managing Partner

Cendana Capital

This Week in Startups is brought to you by… Northwest Registered Agent. When starting your business, it's important to use a service that will actually help you. Northwest Registered Agent is that service. They'll form your company fast, give you the documents you need to open a business bank account, and even provide you with mail scanning and a business address to keep your personal privacy intact. Visit http://www.northwestregisteredagent.com/twist to get a 60% discount on your next LLC. DevSquad. Most dev agencies only offer developers. Why? Because product management is hard. Get an entire product team for the cost of one US developer plus 10% off at http://www.devsquad.com/twist OpenPhone. Create business phone numbers for you and your team that work through an app on your smartphone or desktop. TWiST listeners can get an extra 20% off any plan for your first 6 months at http://www.openphone.com/twist * Today’s show: Michael Kim joins David Weisburd and Jason Calacanis to discuss LP doubts around GPs marking startups (2:43), LP portfolio construction (13:44), secondary strategies (19:57), Keith Rabois returning to Khosla Ventures (35:15), and more! * Timestamps: (0:00) David Weisburd hosts Michael Kim and Jason Calacanis to dive into the world of VCs, LPs and GPs (2:43) Exploring the doubts LPs may have about how VCs are marking startups (7:51) Jason's strategy as an LP in funds and the search for a universal gold standard in LP benchmarks (10:14) Why LPs might be incentivized to allow markups from GPs (12:49) Northwest Registered Agent - Get a 60% discount on your next LLC at http://www.northwestregisteredagent.com/twist (13:44) LP portfolio management best practices (19:57) Evaluating different GP strategies for secondary deals (24:37) DevSquad - Get an entire product team for the cost of one US developer plus 10% off at http://www.devsquad.com/twist (25:44 ) Comparing "idealistic" and "pragmatic" fund manager archetypes. what the right number is for a founder to sell in secondary (33:39) OpenPhone - Get 20% off your first six months at http://www.openphone.com/twist (35:15) Breaking down Keith Rabois leaving Founders Fund to return to Khosla Ventures (44:52) Addressing the challenges and responsibilities of starting a new firm (48:08) Bill Ackman’s crusades, how LPs look at backing outspoken GPs * Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp * Check out: Cendana Capital: https://www.cendanacapital.com/ 10X Capital: https://www.10xcapital.com/ * Thanks to our partners: (12:49) Northwest Registered Agent - Get a 60% discount on your next LLC at http://www.northwestregisteredagent.com/twist (24:37) DevSquad - Get an entire product team for the cost of one US developer plus 10% off at http://www.devsquad.com/twist (33:39) OpenPhone - Get 20% off your first six months at http://www.openphone.com/twist * X: https://twitter.com/MKRocks https://twitter.com/DWeisburd https://twitter.com/Jason LinkedIn: https://www.linkedin.com/in/jasoncalacanis * Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland * Check out Jason’s suite of newsletters: https://substack.com/@calacanis * Follow TWiST: Substack: https://twistartups.substack.com Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin * Subscribe to the Founder University Podcast: https://www.founder.university/podcast

Michael Kim

Founder and Managing Partner

Cendana Capital

0:38 Jason talks about the now fully-virtual LAUNCH Accelerator and intros Cendana Capital's Michael Kim 2:47 What is a fund of funds & why do they exist? History of raising Cendana's first fund 6:06 Portfolio construction of fund of funds 10:19 Why ownership percentage is paramount, ideal ownership % for Seed funds, what makes a great Seed fund manager 17:04 How do fund of funds make money? 18:51 Hedging bets by selling secondary shares to generate liquid cash for LPs 24:33 Michael on Call of Duty, using secondary shares to win a deal 30:46 What was the greatest Seed fund ever raised? 32:42 What is the ideal number of managers in a Seed fund? 36:38 What has the last 90 days been like for Cendana? Influx of new fund managers into the market 41:50 How fast is Cendana in making decisions compared to institutional LPs? 44:47 Will there be a wave of white-collar layoffs, and how will COVID change large tech companies? 52:29 Writing small "pilot" checks over Zoom, venture/growth fund deployment, which companies in non-obvious markets will come out of COVID in great shape? 1:03:37 Robinhood as an acquisition target (Should Facebook buy it?), Dropbox/Slack merger 1:06:17 Why right now is the best time to invest in the early-stage

Michael Kim

Founder and Managing Partner

Cendana Capital

Michael Kim is the founder and Managing Partner of Cendana Capital, a fund of funds which invests in seed VC funds. Michael has many of our previous guests in his portfolio including the likes of SoftTech, Freestyle, Founder Collective, Collaborative Fund and many more, clearly great minds think alike! Prior to Cendana, Michael was one of the original partners of Rustic Canyon Partners a VC firm with $1bn AUM. In Today's Episode You Will Learn: 1.) How Michael made his way into VC and then made the transition into the world of LP? 2.) Why have we seen the proliferation of seed funding? Is this a good thing for the economy? Is dumb money good or bad for the early stage environment? 3.) Chris Douvos states we will begin to see the hybridisation of LPs and GPs, does Michael agree? What are the inherent problems with this happening? 4.) What is Michael's blackbox for assessing emerging fund managers? What does he look for? How can they present their edge? 4.) How does Michael respond to Dave McClure's portfolio construction theory of allocating capital to many startups with the realisation that 0.5% become unicorns? Items Mentioned In Today's Show: Michael's Fave Book: Catcher & The Rye Michael's Fave Blog or Newsletter: Techcrunch, The Twenty Minute VC As always you can follow The Twenty Minute VC, Harry and Michael on Twitter here! If you would like to see a more colourful side to Harry with many a mojito session, you can follow him on Snapchat here! This episode was brought to you by DesignCrowd, the online marketplace for custom graphic, logo and web design that helps startups, entrepreneurs, web developers and agencies outsource design projects to designers from around the world. How Does It Work? Once you have launched your brief, designers will begin submitting quality designs for you to review. With some constructive feedback, you can quickly generate a large gallery of designs that really do fit your needs. You can have exactly what you need within just three days. Once you have selected your favourite design, you will be sent all the files you require to update your branding. If you don't like any of the submitted designs, then DesignCrowd offers a money back guarantee. So checkout designcrowd.com/VC and enter the promo code VC100 to get an astonishing $100 off your next project.

Michael Kim

Founder and Managing Partner

Cendana Capital