This Week in Startups

The End of the ZIRP Era, and why recruiting is SO PAINFUL | E2164

148 snips
Aug 14, 2025
Guest
Grady Buchanan
Guest
Tomasz Tunguz
Guest
Dave McClure
Dave McClure, known for founding 500 Startups, joins venture capitalists Tomasz Tunguz and Grady Buchanan for a lively discussion on the evolving venture landscape. They delve into the challenges of recruiting amid shifting market dynamics, highlighting the impact of long private funding durations on startups. The trio also debates the implications of recent regulatory changes on mergers and acquisitions, and how AI is reshaping investment strategies. Don't miss their insights on adapting to the new era of startup efficiency!
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ADVICE

Run On Debt If Margins Support It

  • Consider running a profitable business on debt if you can borrow at 8–12% instead of raising more equity.
  • Debt can preserve founder control and avoid further dilution when margins support interest payments.
ANECDOTE

Selling Carry Was A Pain

  • Dave described selling pieces of his carry as painful and favoring buyers when he tried to sell from 500 Startups.
  • That experience motivated him to start a secondaries-focused fund to be on the buying side.
INSIGHT

Value Lives Outside The Top 20

  • Top 10–20 private names are highly contested and often overpriced with complex SPV structures.
  • Real value usually exists outside that hyper-competitive top tier where fewer buyers and discounts appear.
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