Author: @credistick

“Why don’t VCs set marks with 409a valautions?”

This is a question I saw on Reddit’s often-comical /r/venturecapital, which I thought was interesting enough to write out a decent response to. It hits at the root of a few major problems in the asset class which are always worth addressing. A 409A valuation, named after Section 409A of the United States Internal Revenue… Continue reading “Why don’t VCs set marks with 409a valautions?”

It’s all about identifying outliers

What startup investors can learn from sports betting Early stage investing is a complex and relatively new practice, which makes it fertile ground for analogies which can help explain the more abstract concepts to both newcomers and veterans alike.  In this particular case, grappling with the intrinsic value of pre-revenue startups, there’s an interesting parallel… Continue reading It’s all about identifying outliers

Startups are the clients of Venture Capital

As a founder learning the ropes of venture capital, you might see VCs as asset managers, with LPs as their customers and your equity as the asset being managed. This is heavily implied by the chain of responsibility: you are required to report your progress to your VC investors who want to see milestones crossed… Continue reading Startups are the clients of Venture Capital

LPs should encourage VC evolution

In a previous article I wrote about the threat of consensus in venture capital. A few days later, Eric Tarczynski shared a fascinating thread about the journey with Contrary, his VC firm. He addressed this point about consensus with admirable candour, summarised here in two points: It’s unusual to get such an unvarnished look at… Continue reading LPs should encourage VC evolution

AI as a Utility

Investors don’t really need to invest in net new companies to get exposure to AI’s potential halo effect; If all your portfolio companies start to integrate with the right existing tools on the market, they could bloom too. It’s the promise of horizontal tech. Natasha Mascarenhas, TechCrunch In a previous post I used the games… Continue reading AI as a Utility

Generative AI and the Games Industry

This post looks at applications of generative AI in the context of the games industry, but much of the same logic can be applied elsewhere. Adapting to technological evolution With every new technology revolution – web3 most recently, and now AI – there follows a large herd of true believers. It can do all things,… Continue reading Generative AI and the Games Industry

Why venture capital should be consensus-averse

In The General Theory of Employment, Interest and Money, Keynes wrote about investment through the metaphor of a newspaper contest to select the six best looking people from a group of photos, with the prize being awarded to the contestant whose choice most closely corresponded to the average of all contestants. Keynes’ point was that,… Continue reading Why venture capital should be consensus-averse

The Negligible Cultural Impact of AI

Good art (including novels, games, movies) is defined by the humanity involved. Emotion, humour, tension. Even when AI attempts to mimic those attributes, we’ll still prefer human experiences over synthetic ones. We’re inclined to believe each new innovation is the ‘best’, and that the technology-driven approach is always superior. To overlook almost anything in pursuit… Continue reading The Negligible Cultural Impact of AI

Metaverse – Reinventing the wheel

Earlier this week, web3 Studios released their ‘Digital Identities Report‘, sharing a variety of opinions and predictions on the future of identity and social interaction in a ‘metaverse’ environment. There is more than fifteen years worth of fascinating sociological research on virtual worlds and digital identity. You would not know that from reading this report.… Continue reading Metaverse – Reinventing the wheel