What Does the Post Crash VC Market Look Like?

Overall, booms and busts in the economy, including in the stock market, have an impact both on the amounts invested by VC firms and on valuations, with later-stage startups getting hit harder. However, the impact is not catastrophic. While startups find it harder to raise capital and find themselves raising at more modest valuations during these ti

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In downturns, good salaried jobs are hard to find, because nobody is quitting. So good people (and cheap assets) are plentiful. The absence of cheap, easy capital means the concept has to work from day one. Founders in downturns imprint a more disciplined DNA on the company’s culture—they have no choice. Clients and consumers are also more open to

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The past several years have been characterized by higher and higher private company valuations, which, when the public markets for tech companies reset over the past few months, left venture capital investors that had invested in later stage private rounds in the red on these investments. In other words, not dissimilar from the issues that employee... See more

For early-stage investing, I believe that the small flat partnership is the best structure if the goal is to produce high return on capital funds. Here are some reasons why this model is superior for early-stage investing:- At the early stage, investors must bet on teams and ideas that have not been proven. The biggest winners almost always come fr... See more