Saved by kev and
Startups and Macro Risk
There are losses for hedge fund investors with large public portfolios at high-cost bases. An early-stage company whose public holdings fall 25% in value feels less pressure than a crossover firm when its portfolio falls from an 8X multiple-of-money to a 6X multiple-of-money. Public securities of such firms are underwater, and private holdings are ... See more
Sarah Guo • when the music stops
History shows some of the best opportunities come in bad times, not good ones.Though we’re not in the business of prediction here at Stonks, in the words of Lord Byron: “The best prophet of the future is the past.”Put simply, if public/crypto market turmoil persists, early-stage valuations may well drop ~30% or lower (i.e.below levels seen merely a... See more
Tom White • How does Early-Stage Venture Capital Perform in a Recession?
Tail-end risk is everything.
I don’t know if Brendan and Bryan’s death actually affected how I invest. But it opened my eyes to the idea that there are three distinct sides of risk:
The odds you will get hit.
The average consequences of getting hit.
The tail-end consequences of getting hit.
The first two are easy to grasp
... See moreFinally, capital is becoming a commodity. The current discussions between economists about the “global savings glut” reveal that there is too much capital to invest and too few opportunities to secure sizeable returns[173]. This may come as a surprise for entrepreneurs who rack their brains in vain trying to pitch investors who refuse to deploy cap
... See more