When Alfred Chuang speaks, people listen. So much so that his capital stalwart, Andreessen Horowitz, calls him “his CEO of Silicon Valley.” Chuang co-founded and led his BEA Systems, an enterprise software group, which he sold to Oracle for his $8.5 billion in 2008. .
In all areas of crypto, blockchain and Web 3.0, companies such as FTX, Solana and Databricks are in Race’s portfolio, Chuang is bullish on Web 3.0, and commentators are predicting the next dramatic move in the evolution of the Internet. I see it as a big change. By decentralization owned by users rather than giant corporations.
Chuang uses the example of Amazon Web Services (AWS), which controls over a third of the Internet infrastructure in the Western world. Crucially, the CEO of Silicon Valley CEOs says the decentralization of the internet addresses the concentration of power exercised by dominant tech groups.
While the recent market crash has slowed growth in the late-stage venture market, the rate and volume of early-state investment deals remain strong, according to Chuang, due to three factors.
First, seed funding is not tied to revenue, and market slowdowns have limited impact on early-stage founders. VC firms like Race offer investments to startups for 18-24 months to penetrate their target market, looking for what they call “founder-market fit.”
Second, your exit doesn’t have to be an initial public offering (IPO). IPOs dry up when technology devalues. The majority of exits are through acquisitions. Consider some of the biggest Scottish tech exits of recent times such as TVSquared, Current Health, Skyscanner and FanDuel.
Third, venture capitalists have US$162 billion in cash for new investments.
So how is this relevant in the context of Scotland? Tech Trends The US tends to migrate. There is an old adage that America sneezes and the world catches a cold.
The findings of the 6th Annual Scottish Startup Survey were released this week. This is a survey of startup founders conducted by his EIE Investor Readiness Program at the University of Edinburgh’s Bayes Center in collaboration with my agency.
93% of respondents say Scotland is a good place to launch a startup, but 88% of startups target non-Scottish investors.
London and the rest of the UK (46%), North America (30%) and Europe (21%) are the most targeted investment regions.
If the mountains do not come to Muhammad, Muhammad must go to the mountains. Along these lines, after a successful trip to Silicon Valley earlier this year, Startup Grind Scotland will be bringing 10 Scottish tech founders to his Slush tech conference in Helsinki next month. increase. For the lucky men and women who are chosen, the Finnish swing offers a great opportunity to meet some of Europe’s top venture capital firms.
Nick Freer is the Founding Director of Freer Consultancy, a strategic corporate communications agency.