Venture capital is dead. There, I said it. In the last 12 months, over $5 billion in venture investments have been lost globally due to a lack of return on investment from these funds. This was not an isolated incident either — there have been many more casualties across the globe as global markets continue to plummet with no end in sight. So what will replace VC?
What I see and hear from fellow entrepreneurs, VCs, and team members at other startups is that all this trendiness is creating a misalignment of expectations for those new to the tech startup world. In my opinion, this is leading to burnout and employee churn. Misalignment of expectations is a recipe for failure. That’s why I wanted to share my experiences and perspective on what you should really expect when joining a startup.
For most founders, the deck is a cornerstone of their seed fundraising process. Unfortunately, most decks are terrible. They’re often difficult to understand, too detailed, or missing key details. The goal of the deck is to provide a clear, simple overview of your company and encourage investor questions to begin a conversation.
Public policy shapes the rules of the game that startups and investors must play by as they begin and grow businesses. Sometimes, policy limits who is allowed to play the game at all. The Securities and Exchange Commission’s (SEC) “accredited investor” definition — one of the primary measures that determines who can participate in private securities offerings — is one of those rules.
“Silicon Valley and the media industry that surrounds it values youth. The culture is driven by the 20-something irreverent founder with huge technical chops who in a “David vs. Goliath” mythology take on the titans of industry and wins. It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales.
“Becoming part of a collective identity is different than being completely anonymous. An anonymous entity is an isolated individual. This is more about fully immersing in group identity. Leaving behind your egoic persona to become a unique node of the group.