The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Lessons from Investing in Uber and Airbnb, How To Think Through Bundling vs Unbundling, Late Stage Funds Moving Earlier, Early Stage Funds Moving Later& The Mechanics of Venture That Founders Should Know with Derek Zanutto, General Partner @ Capital
Nov 9, 2020
Derek Zanutto, General Partner at CapitalG, shares his wealth of experience from investing in high-profile companies like Uber and Airbnb. He discusses how interest rate changes reshape venture capital dynamics and the significant challenge of capital oversupply. Derek explores the concepts of bundling versus unbundling in tech investments, particularly with evolving platforms like Zoom. He also addresses the trend of late-stage funds moving to early-stage investments, stressing the importance of alignment between entrepreneurs and investors.
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From History to Growth Equity
- Derek Zanutto's path to CapitalG was unconventional, starting with a history degree and a student-run business.
- Early investing experience at TPG with Uber and Airbnb sparked his passion for growth equity.
Undisciplined Capital
- Oversupply of capital, especially undisciplined capital, is a major challenge in venture capital, impacting valuations across all stages.
- This oversupply has persisted for over a decade due to low interest rates, making it difficult for investors to find yield elsewhere.
Inflation Risk
- Inflation and potential interest rate hikes pose a significant risk to later-stage valuations.
- Rising interest rates increase the cost of capital and decrease valuation multiples in public markets, impacting private markets.
