What if venture capital isn’t about finding unicorns—but about consistently making good investments? In this episode, I sit down with Eric Scott, Co-Founder and Managing Partner at Overlook Capital, to discuss how his approach to venture evolved from chasing power laws to focusing on fundamentals. Eric explains why most venture frameworks only make sense in hindsight, how thinking like a value investor can improve early-stage decision-making, and why founder quality is ultimately revealed through execution, not narratives. We also explore concentrated markets, late-stage venture dynamics, and how reputation, conviction, and timing shape outcomes across cycles.

Highlights:

Why venture “power laws” don’t help you pick winners in real time
How value investing principles apply to early-stage companies
What most investors misunderstand about founder selection
Why great companies don’t come from A/B testing alone
How venture markets became structurally concentrated
Why smaller funds can outperform in overlooked segments
The hidden role of reputation and signal in fundraising
Why being wrong—and correcting it—is a core investing skill

Guest Bio:

Eric Scott is Co-Founder and Managing Partner at Overlook Capital, where he focuses on investing in category-leading growth companies. He previously worked at Founders Fund and 8VC, gaining experience across early and growth-stage investing, and has also held roles in healthcare and technology startups. Eric began his career after founding a company out of college and brings a cross-functional perspective shaped by both operating and investing experience.

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Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

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LinkedIn: https://www.linkedin.com/in/eric-scott-bio/

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) The One Sentence From Peter Thiel That Changed How He Invests (2:28) Why Venture Capital Might Be Built on a Flawed Idea (4:59) Are Startups Built on Movements or Real Businesses? (8:31) Why Every Great VC Invests Completely Differently (10:40) The Rule That Changed How Founders Fund Picks Winners (12:03) If You’re Firing Founders, You Already Made a Mistake (16:43) What Actually Makes a “Great” Founder (It’s Not What You Think) (22:58) The Story That Redefines What Conviction Really Looks Like (30:14) Why Chasing Billion-Dollar Ideas Is the Wrong Strategy (40:41) The Hidden Game Behind Who Gets on the Cap Table

E354: Why Most VCs Misunderstand Peter Thiel’s Power Law