"VCs got pretty scared, almost a mistake"
On the heels Hustle Fund's Elizabeth Yin has turned her thoughts into a comment published for theinformationsuperhighway. In accordance with her extensive thread, we asked her to adapt her thread for a theinformationsuperhighway column and to have a detailed conversation with us.
What follows is an interview between Yin and me, which came after I read your piece (which you can find here), about fear of venture capitalists, the ability of established founders to make oversized rounds, their advice on growth, and like some A series and B series companies, which have seen impressive sales growth, this new fundraising reality could hardly be financed.
What follows is a edited, occasionally compressed transcript of our chat. Let's go!
theinformationsuperhighway: Okay, question one. They said, "VCs got scared, almost a mistake." Besides the implosion of the WeWork IPO, what are the main reasons for this recent surge in fear?
Elizabeth Yin: If we take a step back, we have to ask ourselves, where is venture capital at all? And when you think of the original venture capital industry, you know that these VCs made big, big bets decades ago, like at the time in the 90s or even before, for some of the chip companies, or even Apple Computers, there there are many bets.