This article was originally published on Forbes here.
The start of each new year brings various predictions for what the year in venture will look like. So it’s timely to ask ourselves, “How reliable are such predictions?” To answer this question, I looked at my own predictions for 2020 and how those compared to what actually happened during the balance of the year. To be fair, mine were made in early April 2020 at the beginning of the pandemic, but they still called for sizable changes in the venture landscape.
My predictions for 2020 were based on our team’s analysis…
This piece was originally published in Forbes here.
It’s interesting to see how the investment process is adapting to this new era of Zoom meetings and other videoconferencing tools. A survey of VCs conducted by Paul Gompers and others that was published last month illustrates one side effect of this new investment process. Early stage VCs report spending almost the same amount of time on sourcing new investments as they did before the pandemic, but they also expect to do fewer investments.
In the last few months, we’ve made a few new investments via Zoom and have also had one…
Looking back at the economic expansion we just wrapped up, one can feel positively nostalgic. The amount of money invested in US tech startups has been breathtaking. Data from PitchBook Data shows that investments went from $35 billion in 2011 to $58 billion just three years later in 2014. In 2019 it hit $107 billion. Now comes what seems to be the great test for startups: surviving this pandemic and its accompanying recession.
We analyzed the outcomes for mature vintages of VC-backed startups, and between the data and our own observations, we’ve seen three notable findings:
This article was originally published online in Forbes.
We all knew that we were at the end of a long economic expansion and overdue for a contraction. We’ve been through downturns before, having worked with companies in both 2001 and 2009. What’s daunting about this looming downturn is that it forces us to consider not only what will likely happen to our companies, but also what impact social isolation will add.
What Does Data From The Past Two Recessions Teach Us?
To better understand what could happen, we reviewed data from past contractions in the venture industry during these two…