20VC Will Seed Pricing Remain High | Where is the Funding Crunch? | Three Core Elements Required to Raise a Series B/C | Why AI is Like the Lottery Today | Why Now is the Best Time to be Investing in Crypto | Why Investors Do Not Want to Reprice Companies
Nov 17, 2023
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Guests Rebecca Kaden, Nicole Quinn, and Eurie Kim discuss the challenges and opportunities in seed, Series A, and Series B funding. They talk about seed rounds in a world of aggressive multi-stage funds, the state of the Series A market, the funding crunch at Series B, the role of AI, and the benefits of investing in crypto. They also discuss unconventional investments and the need for collaborative seed funds.
The integration of crypto in consumer applications has the potential to revive the crypto market and presents an opportune time for crypto investments.
AI offers increased efficiency and productivity across various sectors like healthcare, fintech, and consumer-related services, making it comparable to winning the time lottery.
Deep dives
The Shift Towards Consumer Applications with Crypto
The next era of consumer applications will incorporate crypto beneath the surface, creating a combination of familiar consumer applications with underlying crypto rails. This integration has the potential to revive the crypto market and presents an opportune time for crypto investments.
The Benefits and Applications of AI
AI is compared to winning the time lottery, offering increased efficiency and productivity. It can automate tasks like summarizing meeting notes and provide AI-powered personal assistants. The application of AI is not limited to specific industries but extends across sectors such as healthcare, fintech, enterprise solutions, and consumer-related services.
The Challenges and Opportunities in Seed and Series A Funding
Traditional seed funds may face difficulties in investing in hot seed companies due to the involvement of multi-stage funds at early stages. However, opportunities exist for seed funds that specialize in certain areas or have strong perspectives. Series A investments continue to be active, with valuations remaining stable, though there may be challenges for companies with complex stories or markets.
The Evolution and Challenges of Venture Capital
Venture capital is moving away from consensus-based investing and focusing more on innovative ideas and perspectives. There is a shift toward value creation through focused investments rather than chasing heat. The sector is experiencing a reshuffling, with a press towards tried-and-true strategies and a focus on sustainable businesses. Liquidity and the ability to adapt to changing market dynamics are considered crucial for success.
Rebecca Kaden is a Managing Partner @ Union Square Ventures, one of the leading early-stage firms of the last decade with investments in Twitter, Twilio, Coinbase and many more.
Nicole Quinn is a General Partner @ Lightspeed where she has led investments or sits on the board of Calm, Cameo and LunchClub to name a few.
Eurie Kim is a Managing Partner @ Forerunner Ventures, the leading early-stage consumer fund. Eurie has led investments and sits on the board of Oura, The Farmers Dog, Curology and more.