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The Hit Rate

A VC: Musings of a VC in NYC

This simple and short blog post by the folks at Correlation Ventures contains the key to venture capital returns – the hit rate. Venture capital returns are highly correlated to a fund’s hit rate. I think that is all about the amount of capital in the business now. More capital means more businesses get funded.

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Survival tips for startup founders living through their first market correction

TechCrunch

What is happening to risk-taking in venture capital? As an entrepreneur and venture capitalist who has lived through two downturns (the post-2000 internet bubble bust and the post-2008 financial crisis), I know that entrepreneurial innovation is always alive and that company-building is a marathon, not a sprint.

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Hockey Stick Growth Explained

Feedough

But, still, every startup, especially those seeking angel and venture capital funding, are conditioned to project this growth curve – because investors love it. As the business is scaling up too quickly, some startups can’t sustain the strong growth and eventually crash. Today, disruption is rather slow-paced. Surging Growth.

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HealthXCapital’s team joins Jungle Ventures

TechCrunch

At Jungle, Jauhari will take a similar approach as he did at HealthXCapital, combining capital with strategic partners in the healthcare sector to help startups toward validation and commercialization. The firm has fully deployed its first fund and will no longer make any further investments.

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The Coming Zombie Startup Apocalypse

This is going to be BIG.

Sam Altman of YC recently pointed out that pulling back during the downturn in 2008 would result in several big misses: In October of 2008, Sequoia Capital—arguably the best-ever in the business—gave the famous “RIP Good Times” presentation (I was there). These sound fundamentals drive the venture capital market over the long term.

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7 investors reveal what’s hot in fintech in Q1 2023

TechCrunch

CB Insights recently found that two of the largest global VC firms, Sequoia Capital and Andreessen Horowitz, actually backed more fintech companies in 2022 than any other category. 2008 and 2000), not only have we seen outstanding companies being formed, we’ve also witnessed great venture firm performance during these windows,” he said.

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A look at six new funds begs the question: Is a slowdown really coming?

TechCrunch

For example, Leading Edge Capital closed on nearly $2 billion for its sixth fund, Base10 Partners brought in $460 million for its third fund, Founders Fund secured $5 billion for two funds, Freestyle raised $130 million for its sixth fund and the list goes on and on. That’s new.”. Image Credits: Overlooked Ventures.