The Venture Capital Market In 2021 – Part 1 – Capital is EVERYWHERE, We Need More Entrepreneurs, and The Unpopular Opinion

I am going to break down some thoughts on the state of the Venture market over the next few days.

Let’s start with Capital…

IT IS EVERYWHERE as my friend Justin points out:

I was very lucky/smart to go full-time venture investing with my firm Social Leverage back in 2013. Take a look at these numbers:

As Justin (JohnStreetCapital) concludes…WE NEED MORE ENTREPRENEURS!

Next …

Here is a fantastic take by Frank Rotman of QED who is a great investor. Frank offered up this ‘unpopular opinion‘ to get things rolling:

Crazy funding rounds and hyperbolic narratives crafted by Founders have created FOMO everywhere in the VC ecosystem.

FOMO fuels the crazy funding rounds and rewards Founders with hyperbolic narratives.

Pragmatic advice isn’t valuable in this virtuous cycle.

Frank followed up with this:

Valuations are up. Unicorns are getting birthed faster than ever before. Multiples have hit all-time peaks. New investors are aggressively entering the VC ecosystem.

Who’s to blame? What does it mean?

You can read the whole 30 tweet thread he followed up with right here. It is an ‘Ivy League’ all you need textbook on how to think about the VC and founder ecosystem right now. I urge you to read it and share it with founders and investors you know.

Have a great Friday.