INVESTOR DEBATE: ROUND II. DO MEGA FUNDS STIFLE INNOVATION & DIVERSITY IN PRIVATE MARKETS?

The discussion centers on the impact of megafunds on venture capital and innovation. Ben Kesoka moderates, with panelists Anirudh Garg, Dan Kimmerling, Jeff Weinstein, and Ashley Lewis offering diverse perspectives. Kimmerling argues that megafunds' incentive structures prioritize fees over returns, while Weinstein contends that they enable larger startups and unlock innovation. Lewis highlights the importance of emerging markets, particularly Africa, and the role of local expertise. The panel debates whether megafunds distort talent markets and drive up seed valuations. Predictions include more M&A, the rise of venture pod shops, and megafunds going public. Underrated markets and categories, such as Argentina and global capability centers, are identified. The discussion concludes with varied opinions on crypto and a lighthearted consensus that megafunds are generally bad, except in Africa.