perspectives on funding and venture capital (VC)
how VC is evolving, and musings on funding alternatives for founders
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perspectives on funding and venture capital (VC)
The Indie Era of Startups
bryce.medium.com
As the amount of capital raised by venture capital firms nearly 8x’d between 2013 and 2022, the number of new startups funded didn’t even double.
When you take total VC dollars raised, divided by the number of new companies, you’ll see the average startup today has 5x more VC capital available than its counterpart did in 2013.
Rather than fund more ideas or more types of founders, most VCs simply ended up giving more dollars to more of the same founders and ideas they’d always back.
Great businesses aren’t good enough to drive the kinds of returns needed to generate the kinds of returns mega funds demand. As more capital was consumed, more risk was layered on to push from a great outcome to a mega-fund returning outcome.
Today, the fuel for startups and the oxygen for funds are being cut significantly. There is less available capital and appetite for burn
Playing Different Games - by Everett Randle Playing Different Games
Everett Randlerandle.substack.com1/ Some friends and I are trying an experiment:
$400k for 7% on a SAFE, *before* you've picked an idea for a startup
https://t.co/jQIjyj5w5y
I've done this w/ 3 founders since 2017. 100% of the companies have raised a A and they are worth... See more
Avichal - Electric ϟ Capitaltwitter.com
perfect formula, and the opposite of how VC-backed founders think
The Pomp Podcast on Apple Podcasts
podcasts.apple.com
The deadline for YC S24 is tomorrow. Here's why you SHOULD NOT APPLY TO YC:
YC seems like a reasonable proposition. They give you some money to help start your business, and they promise you access to a community of people that can help you along the way. In exchange, they don't ask for much. The standard YC deal is... See more