DeepSummary
This podcast episode features a conversation with Sam Lessin, a venture capitalist and partner at Slow Ventures. Sam discusses the changing landscape of the venture capital industry, arguing that the era of easy money and overvalued companies is coming to an end. He believes that many VCs became more like asset managers chasing hot deals rather than investing in truly innovative companies.
Sam explains that low interest rates and abundant capital contributed to the overvaluation of tech companies, as investors sought higher returns. However, as interest rates rise and the public markets become more discerning, the VC industry will need to adapt. Sam suggests that successful VCs will be those who think strategically and embrace uncertainty rather than relying on a formulaic approach.
The conversation also covers topics such as the future of crypto, the role of creators and small businesses, and the importance of reputation systems. Sam emphasizes the need for VCs to support companies that create real value and foster entrepreneurship rather than chasing unrealistic valuations.
Key Episodes Takeaways
- The era of easy money and overvalued companies in the VC industry is coming to an end.
- Successful VCs will need to embrace uncertainty and think strategically, rather than relying on formulaic approaches.
- Crypto has the potential to disrupt traditional financial systems and banking infrastructure.
- There is a growing desire for people to find meaningful work that aligns with their values and has a positive impact on their communities.
- VCs should focus on supporting companies that create real value and foster entrepreneurship, rather than chasing unrealistic valuations.
- The public markets are becoming more discerning and are no longer valuing companies at the same high multiples as before.
- Low interest rates and abundant capital contributed to the overvaluation of tech companies, as investors sought higher returns.
- Reputation systems and trust will play an increasingly important role in the future.
Top Episodes Quotes
- “Venture capital on easy mode, or what looked like easy mode, is over, right? But it was never there in the first place.“ by Sam Lessin
- “The difference is, when you think about what's going to happen to VC is VC became an asset management business which let it scale a ton more than it otherwise would have, which let thousands of people work in it that otherwise would never have worked in VC. And it really actually kind of became like shitty banking.“ by Sam Lessin
- “Crypto is fundamentally disruptive to the way banking infrastructure works today. It is a different way to think about markets. There's no easy way for the existing system to just subsume it and adopt it.“ by Sam Lessin
Entities
Company
Person
Episode Information
Turpentine VC
Erik Torenberg
12/19/23
Today we’re back with Sam Lessin for a round 2 focused on the changing landscape of venture. We dig into the viability of M&A as a strategy for startups, “its always been crypto”, media businesses, and the role of reputation systems. If you need an ecommerce platform, check out our sponsor Shopify: https://shopify.com/momentofzen for a $1/month trial period.
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