Gus Tai is a veteran Venture Capitalist and a close friend. We discuss why the Venture Capital industry needs to shrink in size.
Why the VC Industry Must Shrink If you’re trying to understand what’s really happening in the VC industry, Sramana Mitra’s conversation with veteran investor Gus Tai is essential viewing. In this recorded session from the 1Mby1M Roundtable, they each share candid, contrarian insights on why the venture capital industry needs to shrink, what’s driving the
During this week’s roundtable, we had Gus Tai, veteran Venture Capitalist and a close friend, in conversation with me on why the Venture Capital industry needs to shrink in size. We kicked off the conversation with a couple of charts showing the trajectory of the industry over the last decade and analyzed the trends. Clearly,
Ownership matters. If you end your startup journey with a $50 million exit and own 60% of the company, you make $30 million dollars. But if you have raised a ton of money and own just 5%, you need a $600 million exit to make that same $30 million. Much harder to get to.
VCs are salivating over ultralight startups right now. The stigma around solo entrepreneurs will vanish soon. Positioning will remain key to achieving Velocity. And Velocity will continue to drive Fundability. Are you trying to raise money for your startup and getting rejections? It’s worth understanding WHY. VCs are looking for Velocity. Their goal is to
Sramana Mitra: So Dave, last question before we go to the pitches. What have you invested in along these lines that you’re really excited about and that you are okay with talking about? David Hornik: There are a couple. We have invested in a company called Stack AI. These agents are going to allow for
Sramana Mitra: Yes. With your venture capitalist hat on, I will also present another angle to how to think about this; partly because of the audience that we cater to, which includes these small entrepreneurs who are not necessarily thinking about venture capital.
Sramana Mitra: I was also thinking about agentic AI in comparison to two massive trends that we have gone through – e-commerce and Software as a Service (SaaS).