venture capital
resources and insights on the VC industry
Juan Orbea and
venture capital
WTF VC by Slow VC’s Sam Lessin - great assessment of what’s going on in early 2025.
I won’t expand on the onion theory itself, but it roughly follows the following sequential steps:
Team Risk: Is the team capable of executing their vision? Will the team work together effectively?
Building Risk: Can they develop a viable product?
Market Risk: Is there a substantial market for the product? Will customers use and pay for it?
Go-To-Market... See more
Team Risk: Is the team capable of executing their vision? Will the team work together effectively?
Building Risk: Can they develop a viable product?
Market Risk: Is there a substantial market for the product? Will customers use and pay for it?
Go-To-Market... See more
onion theory
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
Sobriety source #2: AI as the next platform shift. Every wave of new companies that transforms their respective industries is fueled by a major platform or technology shift. The advent of the web did this. The smartphone and mobile applications did this. And there is no doubt that AI is our next wave. But does every new wave always necessarily... See more
The Great Sobriety for Venture Investing, Where To Start with AI, & Undeniable Data
AI notes