Economist Podcasts Seed of doubt: venture capital tightens up
Mar 3, 2023
Ore Ogunbiyi, a British-Nigerian journalist covering elections, joins Guy Scriven, the U.S. tech correspondent, to discuss the evolving landscape of venture capital amid a tech slump. They explore a shift from lavish spending to strategic investments in profitable firms. Ogunbiyi dives into Nigeria’s contested election, revealing issues of integrity and technology failures, and how these may influence future political stability. The podcast also touches on the sudden rise of chili crisp as a culinary trend, showcasing its cultural journey from China to the West.
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VC Influence on Startups
- Venture capital has fueled the rise of many tech giants, shaping expectations for startups.
- The focus shifted from early profits to aggressive market share grabs and winner-takes-all battles.
Venture Capital Downturn
- The venture capital market is experiencing a downturn, similar to a venture capital winter.
- Funding has decreased, valuations have dropped, and the creation of unicorns has significantly declined.
Downturn vs. Dot-com Bust
- The current downturn isn't as severe as the dot-com bust, with startups having stronger balance sheets.
- Soaring inflation and higher interest rates have decreased the value of companies promising future profits.