Equity When the economic tide goes out
Aug 11, 2021
The hosts dive into the shifting tides of venture capital, discussing whether the industry is facing an imminent upheaval. They explore the influx of non-venture funding and its implications for startup success. The conversation shifts to the changing dynamics of risk management, particularly in software and ed tech. Rising interest rates bring apprehension about asset bubbles, prompting a new mindset among founders towards sustainability rather than rapid growth. This insightful dialogue reveals the future landscape of startup investing amidst evolving economic realities.
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VC Transformation
- Venture capital has shifted from artisan-based decisions to a more risk-averse, process-oriented structure.
- This is driven by a focus on growth, SaaS, and a flood of new money into the field.
Decreased Startup Risks
- Startup risks, like team, hiring, product, and market risk, have generally decreased.
- Business models and financing are less risky, and even team risk can be mitigated.
Benchling's Journey
- Benchling, a software platform for labs, was initially a hard-to-believe idea.
- It demonstrates how software integration plays can take years to gain traction.