Defying the Decrease in VC Investment, Decline in Valuation Multiples, The Grand Redesign, and the AI Hype Cycle
Social Leverage Letter | Issue #74
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Despite a decrease in venture capital investment in the "big three" of California, New York and Massachusetts, states like Florida and North Carolina saw substantial gains in venture funding in 2022, due to factors such as COVID migration, government initiatives and advantages in specific sectors. Texas also held steady with 2021 levels, with industries such as crypto, space, gaming and cybersecurity thriving there.
Many VCs had been advising startups to extend their runway to 18-36 months since the pandemic began, but now with a decline in valuation multiples, many late-stage companies may not be able to grow into their last round valuation in time and are likely on course for a down round. How it turns out will depend on revenue growth rates and how performance tech stocks perform.
To achieve success, it is important to set SMART goals, but qualitative goals such as developing virtues and character traits require a different approach because they’re difficult to measure and may not be achievable as quickly as you’d like. Understanding the neuroscience behind goal setting and achieving can help reconcile the difference between quantitative and qualitative goals.
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Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.