LP Fund Investing:

  • LPs remain open for business despite what is being said on Twitter
  • Trusted relationships are key to raising a new fund
  • Building an LP acquisition flywheel helps increase chances of raising a new fund
  • DPI (cash back) and differentiation in terms of model are important factors for success

Seed Investing Landscape:

  • Seed pricing remains high and unchanged
  • Multistage funds are more active in seed investing than ever before
  • Seed market will continue to evolve over the next 6 to 12 months

Series A + B Investing:

  • Series A is considered the best risk/reward insertion point in venture today
  • Competition at Series A and B has decreased due to multistage funds focusing more on seed investments
  • There are hidden aspects about this stage of the market that many people do not see or know

Growth Deals and Expectations:

  • Two core elements needed to raise a growth round today: solid AI story and reduced expectations on price
  • Growth round valuations have been impacted over the last 12 months, founders need to adjust their expectations accordingly

M&A Markets:

  • M&A markets have dried up with low levels of activity expected to continue
  • Small scale acquisitions are unlikely due to time constraints and lack of interest in adding headcount
  • Acquisitions worth a billion dollars or more face increased regulatory challenges

IPO Markets:

  • Klaviyo, Arm, and Instacart were not enough to crack open IPO markets en masse
  • The IPO window may crack open in H2 2024 or Q1 2025 with companies like Stripe, Databricks, and SpaceX potentially going public

Secondary Markets for Liquidity:

  • Secondary markets offer opportunities for liquidity for funds, LPs, and employees looking for exits or cash out options
  • The spread between demand side bids and supply side prices is reducing, making secondary positions attractive

AI Landscape:

  • AI will create significant opportunities, but most investments in AI startups will fail
  • Access to proprietary data is the most important differentiator in AI
  • Value accrues to incumbents leveraging existing distribution and startups providing tools for new product paradigms