Call me crazy but I think there are too many Venture funds now, so not only are startups competing and losing at an unimaginable rate, a lot of funds themselves are being outcompeted by larger funds. A lot of lobbying spent to keep up hype hides a lot of the details. My question is when the AI bubble bursts what happens to all of these funds that don't even have a great track record? I really do believe the costs will be high.
I raised $75 M in the late 90s only to watch our valuation collapse post 9/11. Not a dot com but we were drowned by that tsunami. Venture funding operates in cycles. Once this correction is over, things will return.
When I was fundraising in 2023-2024 for my first DeepTech fund, and someone asked me who our competitor was, I would say “the refinancing rate.” Many took it as a joke. But in reality, that’s exactly how it is.
Beating 5-6% annual returns is no easy task. That’s why I was always honest with LPs—don’t invest in my fund hoping for quick profits. Only do it if you are truly passionate about science and believe that the next ascent to the top will be driven by DeepTech startups.
Call me crazy but I think there are too many Venture funds now, so not only are startups competing and losing at an unimaginable rate, a lot of funds themselves are being outcompeted by larger funds. A lot of lobbying spent to keep up hype hides a lot of the details. My question is when the AI bubble bursts what happens to all of these funds that don't even have a great track record? I really do believe the costs will be high.
agreed 100%, I suppose that's the price VC's are wiling to pay
I raised $75 M in the late 90s only to watch our valuation collapse post 9/11. Not a dot com but we were drowned by that tsunami. Venture funding operates in cycles. Once this correction is over, things will return.
Great summary.
Great graphs and layout. Info is on point. Let’s see who harvests in 25
🙌🏻
Really good article!
Loved the article and the data graphs, keep up the good work!
Lovin’ that you added the emojis, really helps with comprehension and makes scanning easier on mobile
Nice!
Time to rethink how and why VC should exist ;)
When I was fundraising in 2023-2024 for my first DeepTech fund, and someone asked me who our competitor was, I would say “the refinancing rate.” Many took it as a joke. But in reality, that’s exactly how it is.
Beating 5-6% annual returns is no easy task. That’s why I was always honest with LPs—don’t invest in my fund hoping for quick profits. Only do it if you are truly passionate about science and believe that the next ascent to the top will be driven by DeepTech startups.
👀