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This article focuses on returns of VC investment. Nothing wrong with that except it doesn't mean VC is going to tank. The nature of VC generally means a hyper f
by algoatecorn 4y ago
This article focuses on returns of VC investment. Nothing wrong with that except it doesn't mean VC is going to tank. The nature of VC generally means a hyper focus of thematic investment. The market has everchanging needs and demands. I expect the direction of VC is changing its focus (already is) toward climate, food, and lifestyle health. VC firms may be cutting back on tech-tech, but they are increasing their contributions toward the topics I listed above.
- jeffreyrogers 4y agoVC returns to software were high because software has high fixed costs, low marginal costs. So the tradeoff was fund a team long enough to get profitable and grow fast and then you get a big return. That's not true of climate, food, or lifestyle health in general (specific companies/business models may be exceptions).
- algoatecorn 4y agoThanks, that's a good point. I agree with climate and lifestyle health, especially considering marginal costs. I think food and ag tech will surprise us though. Besides, VC firms have been rapidly increasing funds toward food and ag tech for the past few years, so they decided one way or another that it is worth it.