The Cyclical Nature of the Venture Industry

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The venture industry is structured in a way that leads to cycles of rising and crashing.
The cyclical nature of the industry does not follow a smooth curve but rather a sawtooth pattern.
Risk-on periods are gradual and reflective, while risk-off periods are abrupt.
The recent shift from risk-on to risk-off has required a quick adjustment.
This sudden change may result in systematic issues, such as stock market struggles and valuation shifts.

This conversation was recorded LIVE at the All-In Summit in Miami and included slides. To watch on YouTube, check out our All-In Summit playlist: https://bit.ly/aisytplaylist

0:00 Bill Gurley & Brad Gerstner break down the state and historical significance of 2022's market downturn

12:27 How VCs will handle capital commitments from LPs, underwriting startups in the new reality

24:14 Bull run mistakes, why VCs don't underwrite lower valuations, handling distributions

33:52 Gurley's take on WeCrashed & Super Pumped TV series, how sophisticated investors got "gaslit" by the market, influx of capital creating consumer-surplus businesses

47:54 Brad predicts the market for next year, Bill gives post-Benchmark plans

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