Founders Play Your Own Game

This is my fifth macro crisis

• The bubble burst in 2022. This was necessary • Recalibration started in H2 2022 and will continue through 2025 as companies run out of runway and VC’s have to raise their next funds. Insider rounds and recapitalizations happening everywhere • Overall assets allocated to VC are shrinking • Exits (aka liquidity for LPs) are way down • Capital efficient growth, path to profitability • Default alive, default dead, default investable

Current Reality

Governance is back

• Non-arms-length transactions, side hustles, and self-dealing are major red flags

Valuation is important

• Focus, simplify, prioritize – subtract not add. PMF

• Founders need to maximize optionality

• Fundraising is back to 2018/19 analogue – time, DD, size of round, etc.

Great time to be a founder

Bubble behaviour again – AI, Crypto

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Globalive

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