Now, it’s been a very strange time to be both fundraising as a company and as a new venture fund, but there’s a couple of things that we’ve been leaning into as we’ve been having these conversations with our LPs and with the companies we’re potentially investing in.
Number one: Valuations are coming down, which means they’re normalizing. We will then be able to take a more powerful equity position in the companies that we deploy capital into, and that’s good for our investors.
Number two: The companies that are receiving money now and the ones that we will be investing in will have to do more with less. This means they’ll be smaller and scrappier, they’ll be hungrier, their burn rates will be less and, hopefully, this will lead to faster and greater profitability on the bottom line.
Number three: The markets are insane right now. I can’t tell you how many companies and LPs I’ve talked to that are frankly a little nervous. That’s typically what happens in a bear market, but also, typically, those that are concerned about what’s happening in public markets should look to longer-term investments like venture. The returns there are pretty consistent over time. Again, that long-term play.
Number four: This is the one I found the most interesting, obviously, because it really applies to us, and that is that venture vintages that launch in bear economies (or down economies) historically and typically outperform and have better returns than those that launch in more booming economies. And that’s obviously what we’re doing right now.
We’re really excited about the opportunities. We are still seeing so much great response from LPs in launching the new fund and we hope you’ll come along for the ride.Contact Us