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The great VC pullback of 2022

mattturck.com

11–20 of 110 posts

Re: The great VC pullback of 2022

#12
Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit.

My app provides me a nice income, but it's far from anything able sustaining teams of dozens of people. And I'm pretty sure throwing money on ads wouldn't change that.

Re: The great VC pullback of 2022

#13
post #11

Let's get concrete: Q1'22 had 8.8k deals[0], which is 19% lower than last quarter. >> How many deals do you think they will report for Q2'22? I'll start, disclaiming that I have no domain or specific knowledge: 7.5k [0] https://www.cbinsights.com/research/report/venture-trends-q1...

Do quarters vary, I mean maybe it's better to compare YoY?

Re: The great VC pullback of 2022

#14

Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit. My app provides me a nice income, but it's far from anything able sustaining teams of dozens of people. And I'm pretty sure throwing money on ads wouldn't change that.

Your app is making money? That's very nice. But have you tried selling the PROMISE of more moneys sometime in the future? Lots and lots of moneys. Just say things like "We are trying to elevate the world's consciousness" and "community-based EBITA!"

Re: The great VC pullback of 2022

#15

Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit. My app provides me a nice income, but it's far from anything able sustaining teams of dozens of people. And I'm pretty sure throwing money on ads wouldn't change that.

You are looking at the darts that didn't hit the bullseye, or fell on the floor.

Re: The great VC pullback of 2022

#16

VCs love to tell everyone the market is moving in their favor (lower valuations, fewer deals, etc). It’s like car salespeople telling you this car won’t last long. Some of it may indeed be true, but it’s in their favor to give founders anxiety. It’s a negotiating tactic, not a public service announcement.

I don't really agree with this, with what I've seen. Or maybe we're just interpreting tea leaves differently. I think in a lot of cases, "market is moving in their favor" is not lower valuations, but higher valuations in the verticals that the VC is themselves investing in. Some of that might be signalling for later-stage VCs to invest at later rounds. But I think, other than the onset of Covid, and the last 6 months, I haven't seen an overly negative messaging. It might be true that the immediates (lower valuations) benefit them, but the long-term (no later-stage funding) is not in their favor.

Re: The great VC pullback of 2022

#17

Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit. My app provides me a nice income, but it's far from anything able sustaining teams of dozens of people. And I'm pretty sure throwing money on ads wouldn't change that.

You are thinking small and that’s fine. It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of effort before the big payoff.

Re: The great VC pullback of 2022

#18
post #14

Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit. My app provides me a nice income, but it's far from anything able sustaining teams of dozens of people. And I'm pretty sure throwing money on ads wouldn't change that.

Your app is making money? That's very nice. But have you tried selling the PROMISE of more moneys sometime in the future? Lots and lots of moneys. Just say things like "We are trying to elevate the world's consciousness" and "community-based EBITA!"

Silicon Valley was a great show

Re: The great VC pullback of 2022

#19
post #7

Interesting. Maybe my customers are in a different market than where this was based on but I haven't seen a slowdown, either in deal volume or in the size of the individual deals. Bumper Q1 in fact and Q2 looks quite strong so far. Obviously the war in Ukraine has a lot of people worried and I have seen some immediate impact of this in some of the start-ups I looked at (because they either had a development or a supp…

The self-quotes really threw me off once I realized they were self-quotes. Most of them seem like self-comments, which would feel better if added as some sort of sidebar instead of interrupting the content.

Re: The great VC pullback of 2022

#20
post #14

Earlier quoted context omitted.

Your app is making money? That's very nice. But have you tried selling the PROMISE of more moneys sometime in the future? Lots and lots of moneys. Just say things like "We are trying to elevate the world's consciousness" and "community-based EBITA!"

Silicon Valley was a great show

Those quotes came from Wecrashed about WeWork.
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