This Week in Startups Robinhood earnings breakdown, Amazon launching department stores + Mark Suster deep dives VC | E1268
Aug 19, 2021
Mark Suster, a partner at Upfront Ventures, shares his insights on the shifting landscape of venture capital and the importance of community as a competitive advantage. He discusses evaluating Robinhood's impressive earnings amidst market changes and Amazon's foray into department stores. Suster also emphasizes the significance of robust metrics in venture funding, exploring complexities like MOIC and the relevance of cash returns. The conversation highlights the dynamic nature of investment strategies and the vital role of engagement in startup success.
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Venture Capital Evolution
- The venture capital landscape has changed drastically since 2009, with higher valuations and more frequent billion-dollar outcomes.
- The term "unicorn" didn't exist, and iPhones were new, highlighting the rapid evolution of the tech industry.
Goat's Success Story
- Mark Suster discusses Goat, a sneaker marketplace where Upfront Ventures was an early investor, now valued at $3.7 billion.
- Investors initially underestimated the market size, demonstrating how internet scale can transform niche markets.
The Power of Community
- Mark Suster emphasizes that community is the most defensible strategy on the internet.
- Building a strong community creates a network effect that makes it difficult for users to migrate to competitors.
