Transcript: What late stage investors got wrong about investing in Startups? (Insight)
Explore the full transcript of this insight episode from The Startup Project, where host Nataraj Sindam critiques the current state of late-stage venture capital. Nataraj discusses why VC firms claiming expertise in both early and late-stage investing are fundamentally flawed, how this impacts price negotiation and valuations, and why Limited Partners should be cautious. Discover his perspective on the misalignments within the industry and the potential consequences for investor returns.
2024-01-08
I feel like venture sort of got confused itself with late stage investing. and even now like there are some forms raising funds to invest in the secondaries for some of the startups. I feel like if I was an LP, I wouldn't do that. invest in those funds because the same company which is doing pre seed um or seed, they're claiming that they understand you know, late stage valuations, but I wouldn't invest in a firm that is doing both seed and late stage. because I think as an industry we're getting that wrong. Um I don't think we are negotiating the price in the sense that it makes sense for us to get a return. Um right? So it is that's what I think. And even with the good companies, you make because at some point the valuation starts to not make sense, right? even for good companies.