The Index Fund That Changed Venture Capital

Episode 1 of The Venture Capital Investor Podcast for Limited Partners. We anchor on a specific number: SoftBank's Vision Fund deployed roughly $100 billion in its first incarnation, rewriting the rules of scale in venture. But the more telling shift? The rise of permanent capital vehicles and what they mean for LPs trying to get net-of-fee returns above public markets. Lucas and Luna unpack the Vision Fund's structure — how its $100 billion raised from the Public Investment Fund of Saudi Arabia and Mubadala, its 7% preferred return hurdle, and its use of debt created a new template. Then we contrast that with smaller, evergreen funds like the ones run by Tiger Global and Coatue, which now compete for the same deals. The episode asks: Is the LP being served by this trend toward larger, less liquid venture funds? We walk through the fee math — think 2% management fees on a $100 billion fund means $2 billion a year before a single investment — and what that drag does to net returns. Plus, a concrete example: Sequoia's decision to restructure into a permanent capital vehicle and what it signals about where the industry is headed. No hot takes. Just the numbers and the questions every LP should be asking. #VentureCapital #LimitedPartners #SoftBankVisionFund #PermanentCapital #LPInvesting #SequoiaCapital #TigerGlobal #Coatue #FeeStructures #AlternativeInvestments #PrivateEquity #StartupInvesting #PortfolioConstruction #InstitutionalInvestors #Finance #BusinessPodcast #FexingoBusiness #Fexingo Keep every episode free: buymeacoffee.com/fexingo