Analysis Of The Topic Wax And Wane With Market Cycles

1519 Words Aug 21st, 2015 7 Pages
VC funding.
Our perspectives on the topic wax and wane with market cycles. We love capital efficiency until we love land grabs until we abhor over funding until we get huge payouts and ring the bell for more funding until we attract every non-VC on the planet to invest in startups until it crashes and we start the cycle all over again none the wiser. Amnesia sets in and we get back on the merry-go-round.
I saw this great image on Twitter courtesy of Simon Wardley, CC3.0 by SA. (blog here). It’s kind of a truism for life and certainly our industry. I see it in many young pups. They enter the industry knowing that they know nothing. Same as I felt. If one entered between 2009-2015 he or she is no doubt in the “hazard” phase where one need to be careful about thinking he know more about the industry than perhaps he do. We’ve had just one market since then and it could confuse one into thinking: every deal finds downstream investors, every company good or bad finds a home, you know anything at all about brazil, india, china or even saas sales, ecommerce or analytics (you know all these in a bull market) the more money you give a startup the faster they grow
I think I’m at the expert stage of venture capital and I mean in the Wardley sense. The longer I do this the more humbled I become. Not the kind of false, humblebrag, “I’m always ready to learn” kind of humble but the “who the fuck knows” and “G-d I hope I’m right” sort of humble. One of the most successful investors…

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