Equity The Theory Ventures venture theory with Tomasz Tunguz
Oct 25, 2023
Tomasz Tunguz, founder of Theory Ventures and former Redpoint investor, shares his insights on the evolving landscape of venture capital. He discusses his reasons for starting his own fund, the enduring appeal of seed deals, and his bullish stance on Ethereum's financial growth. Tunguz delves into the significance of software valuation in today's market, the impact of economic shifts on investment strategies, and the promising future of machine learning and decentralized databases. It's a fresh take on the intersection of technology and investment!
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Early Expensify Investment
- Tomasz Tunguz partnered with Expensify early on, investing $400,000 for 20% during a Series A round.
- This round would now be considered a seed or pre-seed, highlighting how funding stages have evolved.
Impact of Zero Interest Rate Policy
- Venture capital returns in the past decade have primarily been driven by the Federal Reserve's zero interest rate policy.
- This policy inflated valuation multiples and created a lively exit market, impacting returns.
Decentralized Infrastructure Thesis
- Tomasz Tunguz believes decentralized infrastructure, like blockchain, will change data ownership.
- Shifting data control to end-users, he argues, will reshape user-asset-business relationships.
