Sarah Drinkwater
@sarahdrinkwater
Knowledge beachcomber interested in the ownership economy, flourishing communities, ecosystem building, magic, and knowledge as an end to itself.
Sarah Drinkwater
pocket operator™ for Pixel™
teenage.engineering
Beyond Euro-Optimism: Who Can Fix European Tech and Why They Haven't
substack.com
Creators lead the way. Many members of this movement built their reputation as creators, amassing large audiences in the process. This influence has been translated into securing allocation in competitive rounds. Those that tell powerful stories about their portfolio businesses can drive remarkable results.
Mario Gabriele • The Future of Solo Capitalists | The Generalist
The Indie Era of Startups
bryce.medium.com
perspectives on funding and venture capital (VC) and venture capital
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
In-group Cheems is particularly pernicious because of the strength of peer effects. If you are surrounded by like-minded, ambitious, will-to-act-havers, you are unlikely to find yourself much affected by In-group Cheems.
#1: In-group Cheems
Venture firms should aggressively ally with these disruptors. While tier 1 funds will worry more about Tiger Global, solo investors have changed the market’s dynamics. Proactive firms will adapt, empowering these managers and benefiting from their favorable brand and impressive reach.