← Home
The Twenty Minute VC · September 14, 2026 · 01:08:55

20VC: How LPs Allocate to Venture in 2026: What They Want, What They Do Not Want | Why Fund Multiple Does Not Matter Without a Timeline | Why Velocity of Cashback is the Most Important Thing with David Morehead, CIO @ Baylor

David Morehead
Show Notes

David Morehead, CIO of Baylor University's $2.6 billion endowment, joins 20VC to reveal how limited partners are allocating to venture in 2026 He explains why portfolio construction outstrips manager selection, why LPs should back emerging managers over well‑known brands, and how Baylor scored big during the SaaSpocalypse The conversation covers public market volatility versus private valuation games, tactics for deploying capital during market crashes, the awkward dilemma of firing a profitable fund manager, and whether grassroots pushback against data centers could stall the AI boom

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Highlights

•
How Baylor Profited from the SaaSpocalypse21:00
Morehead details the strategies that allowed Baylor's endowment to make millions during the SaaS sector's downturn.
ClaudeChatGPTGemini
•
How to Buy a Market Crash Without Catching a Falling Knife34:00
Morehead provides a framework for deploying capital during downturns without mistiming the absolute bottom.
ClaudeChatGPTGemini
•
Could Backlash Against Data Centres Derail the AI Boom?57:00
Morehead examines whether environmental or community opposition to data center construction could slow AI adoption.
ClaudeChatGPTGemini

Editorial

•
Portfolio Construction Over Manager Selection04:00
Morehead explains that how you allocate assets across classes matters far more than picking individual fund managers.
ClaudeChatGPTGemini
•
LPs Should Back Emerging VC Managers, Not Just Big Names14:00
Morehead argues that limited partners should seek out breakout managers rather than piling into oversubscribed, established funds.
ClaudeChatGPTGemini
•
Public Markets Are a Casino, Private Valuations Are the Real Fiction26:00
Morehead critiques both public and private markets: public markets are driven by short‑term sentiment, while private valuations are often unreliable.
ClaudeChatGPTGemini
•
Would You Fire a Fund Manager Who's Making You Money?49:00
Morehead discusses the dilemma of whether to retain a manager who performs well financially but conflicts with other aligned goals.
ClaudeChatGPTGemini
•
Which Asset Class Is Overhyped—and Where Is the Next Big Opportunity?01:02:00
Morehead identifies overvalued sectors and predicts where the next wave of returns may come from.
ClaudeChatGPTGemini
Was this useful?