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It’s Morning in Venture Capital

Both Sides of the Table

I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us. The number of startups being created has increased by an order of magnitude. Thank you, Aaron Sorkin! The Funding Problem.

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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. What accelerated this was the collapse of the public stock markets. Importantly, what does this all mean for startups?

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Bezos' Shareholder Letter in 2000

Tomasz Tunguz

Jeff Bezos wrote this to start his annual shareholder letter in the year 2000. Startups feel this way today. Two years later, the company would re-accelerate growth from 13% to 26%, and again to 34%, while driving to profitability and increasing their cash position from $540m to $738m. But he might have written it today.

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GRP Announces $200 Million Fund. Rebrands as Upfront Ventures

Both Sides of the Table

We have previously raised funds in 1996 ($200 million), 2000 ($400 million) and 2008/9 ($200 million). Santa Monica is the place where the highest concentration of early-stage startups are created if you consider also the contiguous geography of Venice Beach. Startup Advice' Let’s start with the fund.

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The Screwy Logic of Crowdfunding and Venture Fund Regulation

This is going to be BIG.

You know, because sometimes startups just simply don't make it [shrug] but you gotta watch out for those financial hucksters who are looking to take your money and run off to kick it in Fiji. 25 people I've actually placed at companies as part of a message of how I help startups. At least startups have accelerators, incubators, etc.

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What Happened In 2022

A VC: Musings of a VC in NYC

What happened in 2022 is the bottom fell out of the capital markets and the startup and tech sector more broadly. The air came out of the asset price bubbles that had built up over the last decade and were accelerated/exaggerated by the pandemic. That has meant layoffs across the tech, startup, and web3 sectors.

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The Startup M&A Market Fell 94% Year over Year - But One Segment is Thriving

Tomasz Tunguz

The US startup M&A market in Q4 2022 was one of the quietest in the last 20 years. In percentage terms, last quarter dropped the most since 2000, falling 94% year-over-year. During a down-market, young startups who face a radically more challenging fundraising market than six months ago more often choose a quick sale.

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