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The technology industry has always celebrated scale. From the industrial revolution to the moving assembly line, the rise of computing, and onward into the cloud. Technology and scale have become synonymous. In many ways, that s worth celebrating. Scale enables otherwise unworkable economics, allowing solutions that can benefit a much greater share of the population. But [ ] The post Temu…
The importance of a common vocabulary in venture capital Many of the debates within venture capital are driven by nothing more than the lack of standard terminology. Investors will argue over ideas with no hope of reconciliation, because they simply do not share a common definition for the concepts involved. Worse still, these shifting definitions [ ] The post Consensus Is a State, Not a Spectrum…
Venture capitalists have a bad habit of overanalyzing the status quo and plotting their strategy around new normals . This is self-defeating behaviour, for a number of reasons: Here s a simple truth which may spare investors some time and anxiety: Temporal market perspectives are worthless. They are either well-intentioned but misdirected or they are being used [ ] The post Narrative Shackles…
Private markets have inherited the curse of myopia It s a long held belief that public markets may be a poor environment for innovation because of the short-term focus driven by meeting quarterly targets. However, there s an indication that this has reversed. Research from the 1990s and early 2000s did indicate that public companies invested less, [ ] The post The Tyranny of Revenue appeared first…
The future will be funded by solo techno-capitalists It’s night in Amsterdam, morning in Silicon Valley. Today, fifty thousand human babies are being born around the world. Meanwhile automated factories in Indonesia and Mexico have produced another quarter of a million motherboards with processors rated at more than ten petaflops—about an order of magnitude below [ ] The post The Macx Threshold…
The megafund narrative of the last few years has been that these firms provide a solution to the big institutional LP allocation problem; you can park a huge pile of cash and get private market exposure with returns above the cost of capital with minimal stress. It s a reasonable premise, and in a world where [ ] The post Diseconomies of Scale appeared first on Credistick .
Debunking the supply constraint of great founders Increases in venture fund-raising which are driven by factors such as shifts in capital gains tax rates appear more likely to lead to more intense competition for transactions within an existing set of technologies than to greater diversity in the types of companies funded. Short-Term America Revisited? Boom [ ] The post The Paper Ceiling appeared…
Polish-American scientist and philosopher Alfred Korzybski is remembered for his statement, the map is not the territory . The map-territory concept, which runs parallel to Baudrillard s concept of hyperreality, reminds us not to confuse the abstract with the actual. The map is not the territory. The menu is not the meal. The words are not the [ ] The post Mapping Venture Capital to Reality…
Accelerated payoffs incur a debt against the future Serendipity is not always about a single incident at a particular point in time, but requires tenacity, resilience, and the ability to see the bigger picture. Dr Christian Busch If you believe that AI is the next great leap in the story of humanity, you may also [ ] The post The Trap of Performative Success appeared first on Credistick .
Checking in on the health of venture capital Yesterday, a prominent former-VC posted a reponse to data from Beezer Clarkson, questioning how we understand the health of the venture capital industry. His suggestion was that number of active funds may not be the right lens, and that the fall may be a natural result of [ ] The post Hard Truths appeared first on Credistick .