"What this means for investors who focus on Series A investment rounds and beyond is that the market should become more and more efficient while investing becomes less and less profitable."
-
Show this thread
-
"Even the biggest Silicon Valley venture capitalists are very, very small by global finance standards. And as SV finance is exposed directly to the broader East Coast & global financial system, VC firms that once thought of themselves as big will discover they are small fish."
1 reply 0 retweets 6 likesShow this thread -
"On the other hand, seed investing is somewhat insulated from the shifts occurring in the venture market because, brand-new startups lack the instrumentation and metrics needed for efficient scale. As a seed investor, you are still mostly betting on people and ideas—not metrics."
1 reply 0 retweets 8 likesShow this thread -
"Seed investing also rapidly becomes uneconomic for any large fund; even enormous wins from a seed fund simply cannot earn the sheer dollars needed to make a larger fund successful."
1 reply 0 retweets 4 likesShow this thread -
"If you are a young person working in and around the VC ecosystem, you have a big choice to make right now about how you want to spend your career.
1 reply 0 retweets 3 likesShow this thread -
However, if you want to be a venture capitalist leading the next era, you should look for opportunities no one else is funding because they are too weird, too crazy or too small—at least today."
1 reply 0 retweets 7 likesShow this thread -
nicole ruiz ( 📜, 📜 ) Retweeted nicole ruiz ( 📜, 📜 )
(shameless plug: we focus on plenty of areas like this at Compound, and this aligns well with our own philosophy - and if that's interesting to you as well - we're currently hiring. https://twitter.com/nwilliams030/status/1442489485443452935?s=20 …)
nicole ruiz ( 📜, 📜 ) added,
2 replies 0 retweets 10 likesShow this thread -
"In 2015 Marc Andreessen tweeted that he believed venture capital was restructuring into a few large franchises and a large number of small boutique specialists. The firms in between, he said, would die."
1 reply 0 retweets 5 likesShow this thread -
"It isn’t that venture capital is restructuring, as an industry does. But it will vanish from certain types of investments, like software, where bigger financial institutions will swallow up the opportunities.
1 reply 0 retweets 6 likesShow this thread -
Specialists will exist, but they won’t be investing in the things that have defined the VC playbook of the recent past, like software and marketplace and e-commerce businesses. They will have moved on to new opportunities at the current frontier."
3 replies 0 retweets 3 likesShow this thread
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
