The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Insight Managing Director, Deven Parekh on The Current Funding Mania, Compression of Round Timelines, Fund Deployment Speeds Increasing & How To Think Through Price and Time Allocation Across the Portfolio

May 17, 2021
Deven Parekh, Managing Director at Insight Partners, shares his journey from biochemistry to venture capital, emphasizing resilience during economic crashes. He discusses the current frenzy in fundraising and how rapid decision-making has reshaped investment strategies. Deven dives into portfolio management and the challenges of price sensitivity, leaning on past experiences to navigate ownership complexities. He also highlights the potential of data innovations in life sciences, reflecting on the significance of transparent, trust-based negotiations.
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ANECDOTE

Unexpected Path to Venture Capital

  • Deven Parekh's career path was unexpected, starting in biochemistry before switching to economics.
  • He joined Insight Partners after initially declining their offer, recognizing the opportunity later.
INSIGHT

Economic Dislocations and Software Resilience

  • The dot-com crash involved many unsustainable businesses, while the 2008 crash affected real companies but software remained resilient.
  • COVID, surprisingly, accelerated digital transformation and highlighted software's resilience beyond expectations.
INSIGHT

Justifying High Valuations

  • High valuations can be justified if growth expectations are met, due to the power of compounding.
  • Focus on accurate growth underwriting, as price becomes less critical when growth is strong.
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