Navigating difficult markets w/ Adam Valkin, General Catalyst
Aug 23, 2023
auto_awesome
Adam Valkin, Managing Director at General Catalyst, shares insights on navigating difficult markets in 2023, investing, firm building, and partnering with founders. He highlights the importance of building alignment and expertise in a small venture firm, the significance of meaningful connections with founders, and the ultimate success being dependent on the founders and their management team.
Building successful products and creating long-term value should take priority over capital availability in the venture capital industry.
Founders and emerging managers should be flexible, adapt to changing conditions, and take advantage of hiring opportunities and potential mergers and acquisitions to remain competitive.
Deep dives
The Rise of Ventur Capital
Venture capital has experienced significant growth over the past 20 years, with global VC reaching $650-700 billion in 2021. The industry has seen a surge in capital availability, making it an opportune time for founders to start their own companies. However, capital should not be the sole focus, as building successful products and creating long-term value should take priority.
Adapting to Changing Market Conditions
In the current market environment, founders and emerging managers need to be flexible and adapt to changing conditions. This may involve restructuring their cost base, extending runway, or acquiring talent and companies to remain competitive. With talent now more readily available, companies can take advantage of hiring opportunities and potential mergers and acquisitions.
Navigating the Funding Landscape
During periods of market uncertainty, it is crucial for founders to stay in the game and focus on building products that customers love. Rather than solely concentrating on fundraising for the next round, founders should aim to create long-term value for their companies. Additionally, founders should be prepared for potential pullbacks in funding and be willing to restructure their operations to maximize runway.
Advice for Emerging Managers
For those starting their own venture capital firms, it is essential to ask oneself why they are pursuing this path and whether they are truly passionate about building something special. Understanding what the firm stands for and how it can provide founders with an unfair advantage is crucial. Building strong relationships with founders and being present during meetings can help create a positive impression and potentially accelerate a company's growth.
Beezer Clarkson of Sapphire Partners and Nick Chirls of Notation host Adam Valkin, Managing Director of General Catalyst at their NYC office.
Adam Valkin is a Managing Director at General Catalyst. Adam leads the firm's global early-stage practice and co-led its international expansion. He has been at GC for over ten years after joining the firm from Accel London. He has a uniquely global perspective on venture and entrepreneurship and has experience as both an operator and investor.
In this episode, we cover a variety of topics, including how founders and VCs can navigate difficult moments faced in 2023, how he approaches investing, firm building, and partnering with founders, and why perhaps the current market is not as bad as many have feared. There was a wealth of wisdom in this episode, and many thanks to Adam for agreeing to do his first pod with us.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode