In his book ‘Capitalism, Socialism, and Democracy’, Joseph Schumpeter argues that capitalism is ever-changing as new innovations create new markets and rendering existing ones obsolete over time, thus ‘destructing’ them . This process was described by Schumpeter as ‘creative destruction’. Here are a few examples of creative destruction: Smartphones replacing MP3 players which replaced CD…… Continue reading Generative AI and ‘Creative Destruction’
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Why do VC funds need substantial ownership in seed rounds?
Valuation / ownership is one of the key subjects for negotiation between VCs and start-ups, especially at the seed stage where technology validation, go-to-market and commercial risks are high. The relevant model that includes the figures discussed later is attached in the link below: VC financing model This model can help founders get in the…… Continue reading Why do VC funds need substantial ownership in seed rounds?
Why a Deep Tech strategy makes sense
VC investment in deep tech is on the rise. But how is deep tech defined? My favorite definition of deep tech is provided by Nathan Benaich (Founder and General Partner at Air Street Capital) ‘For a startup to earn the ‘deep tech’ label, there must be science or engineering risk in getting the idea to…… Continue reading Why a Deep Tech strategy makes sense