Capital Allocators – Inside the Institutional Investment Industry cover image

Josh Wolfe – Caution and Innovation at Lux Capital, Venture is Eating the Investment World 8 (Capital Allocators, EP.236)

Capital Allocators – Inside the Institutional Investment Industry

CHAPTER

Navigating Venture Capital's Highs and Lows

This chapter explores the current venture capital landscape, marked by inflated valuations and an abundance of capital, while cautioning against the risks of market corrections. It contrasts the optimistic potential for innovation with historical parallels to the dot-com bubble, emphasizing the importance of recognizing signs of impending downturns. The discussion also highlights the challenges of investing in high-competition markets, particularly distinguishing between software and science-driven companies, and the role of decision science in investment strategies.

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