On this special segment of The Full Ratchet, the following Investors are featured:
- Ambar Bhattacharyya
- Rick Heitzmann
- Alexa von Tobel
We asked guests to discuss the factor that could cause the most disruption to the industry going forward and how that will change the next decade of venture.
The hosts of The Full Ratchet are Nick Moran and Nate Pierotti of New Stack Ventures, a venture capital firm committed to investing in founders outside of the Bay Area.
Want to keep up to date with The Full Ratchet? Follow us on social.
You can learn more about New Stack Ventures by visiting our LinkedIn and Twitter.
Are you a founder looking for your next investor? Visit our free tool VC-Rank and we’ll send a list of potential investors right to your inbox!
Transcribed with AI:
0:18
Welcome back to TFR on today’s special segment, we asked guests to discuss the factor that could cause the most disruption to the industry going forward, and how that will change the next decade of venture. Here’s the segment called disruptive forces.
0:38
On today’s special segment, we have ombar Bhattacharya of maverick ventures bar, what factor could cause the most disruption to the VC industry? And how will that make the next 10 years of VC look different than the last one?
0:51
The most disruption? I think is I mean, we’ve seen it a little bit today, you know, in the last, you know, 18 months, has been the lack of a viable IPO market. You know, the way that venture has has worked over the course of time is, you know, money comes in, and then there’s m&a and IPOs and money gets distributed back out. I think the bar has shifted pretty dramatically the last few years in terms of what a company needs to look like in order for it to go in it for it to go public. And that bar changes all the time. But the venture industry has been very reliant on that exit market existing not just for distributions, but also to finance companies at later stages, certainly in the biotech world like that IPO market is critical for running clinic for running clinical trials. But even in a technology centric world, many of the companies that do go public are still lost producing. And so the IPO proceeds can help help them on their path towards profitability, help them expand their their their markets helped build credibility with customers and employees. And so if if, for whatever reason, there continues to be a prolonged, you know, absence of technology driven IPOs, you know, that that’ll be tough for the industry. And we’ll have to be more reliant on other ways of of distributions, whether that’s m&a continuity funds, dividends, or whatnot. But that would look very, very different.
2:16
Do you expect that IPO situation to persist? Or do you think it will rebound? In the coming year?
2:25
I’ll be honest with you, I mean, like the NASDAQ has been hitting all time highs now for how many? How many months in a row. And so I would have expected the equity capital markets environment to have been a little bit more receptive to to technology centric IPOs. Today, there’s been a few, of course, you know, rubric more than most recently. But it has still not been at the velocity I would have expected yet. I’m still hopeful. I mean, you know, having the markets be as strong as they are, I’m still hopeful this will happen. So perhaps it’s because it’s an election year, perhaps it’s because interest rates are still as high as they are. So I’m still hopeful. But we haven’t seen that full time yet.
3:11
On today’s special segment, we have Rick Heitzmann of first mark, Rick, what factor could cause the most disruption to the VC industry? And how will that make the next 10 years of VC look different than the last time? Well, the
3:22
last 10 years has been a rollercoaster ride of ups and downs, I think there’s going to be two things that happen. I think the first thing is you’re going to see about half the VC firms go away, I think it’s you, I think you haven’t seen the full effect of a pullback, you know that we’re still paying for some of those sins of 20 as an industry of 20 and 21, where there probably was less diligence and less price sensitivity than it should have been. So as those firms go away, and those GPS go away, you’re going to see tightening on entrepreneurs, and it’s gonna be harder to raise capital. So that’s what’s going to happen. But I think that’s going to be in general, very, very healthy, that you’re going to see companies that are going to be built are going to be built capital efficiently. I think the entrepreneurs that are successful in those areas are going to build capital efficient businesses that are not incremental, but are creating real changes in the world, and therefore they have the ability to build extraordinary large companies.
4:29
On today’s special segment, we have Alexa Von Tobel of inspired capital, Alexa, what factor could cause the most disruption to the VC industry? And how will that make the next 10 years of VC look different than the last?
4:40
I mean, interest rates, interest rates, maybe let’s pretend I don’t believe that will happen. I’m hoping we’re trending towards the Fed cutting rates but if interest rates went up to 8% fewer LPS existed go deploy capital towards ventre. Real Assets become more First thing, the fact that you can make significant return, doing far safer things. This is not you know, we come to work every day to take really scary risks. That is our job. So interest rates would be, I think, pretty important.
5:20
That will conclude this installment of investor stories. If you’re enjoying the program and would like to see it continue. Take a moment and leave a five star review in iTunes. Okay, that will wrap things up for today. Until next time, over prepare, choose carefully and invest confidently thanks for joining me
