Earlier this week, GGV Capital’s Jeff Richards and Hans Tung joined TechCrunch for an Extra Crunch Live session. During our hour-long chat, we touched on startup profitability, the worldwide enterprise capital scene, why GGV doesn’t have an workplace in Europe, how the enterprise business is responding to its stark lack of range and different points.
When it involves helpful bits of data, this was maybe essentially the most helpful Extra Crunch Live dialogue wherein I’ve participated. One second that stood out got here early within the chat once we had been speaking about COVID-19-driven headwinds and tailwinds and what number of startups may be in bother. Richards stated the next (emphasis by way of TechCrunch):
“You know, the one factor that’s been exceptional for me — I used to be in Silicon Valley as an entrepreneur within the ’99, 2000 dot-com bubble, and 9/11. I used to be right here in ’08, ’09 — I feel there’s a degree of resiliency in Silicon Valley that we didn’t have 10 years in the past and 20 years in the past. I don’t have knowledge to level to that. But we have now been saying now for a number of months that we’ve been blown away on the degree of maturity, calmness, perseverance [and] resiliency that our firms and the founders and administration groups have. On an emotional degree, it’s been very heartwarming, since you hope to again the form of individuals which can be constructing actual firms that may stand up to challenges.
I feel the corollary to that’s you’ve seen firms that raised a ton of cash and had been burning a ton of money and weren’t constructing superb companies, lots of these frankly went below in Q1 or are going below now. They haven’t been in a position to increase additional cash and so they’re simply form of lifeless.”
Both Richards and Tung had been optimistic about their very own portfolio firms’ current efficiency and monetary well being (money place, actually). But it seems that not solely are their portfolios doing nicely, however different startups are a bit extra strong than in earlier downturns.
On the flip aspect, nonetheless, there’s a separate cohort of startups that had been working inefficiently earlier than and are actually maybe unfundable. Reading each factors in unison, it seems that the startup market is bifurcating between the businesses that can come out of the COVID-19 period unwounded, and people which can be struggling. And the businesses that weren’t essentially the most money hungry most likely have the very best likelihood of being within the first bucket.
There’s much more to get to. So hit the soar for the total video and audio, and some extra of the very best bits from the transcript. (You can snag an inexpensive Extra Crunch trial right here for those who want one.)
Oh, and don’t overlook to remain updated on coming chats. There’s nonetheless lots to do.
The full chat
Here’s the total video rewind. Our favourite bits of the transcript observe: