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Why I (still) think, it is the perfect time to continue/start investing in venture?

1) The world as we know it is in the midst of a very dramatical technological revolution. I believe we are only in the beginning of the crazy disruptions that will come out of AI and ML in industries like health, agriculture and industry. Robots will undoubtedly be able to relieve us of most service and manual labor jobs. Life expectancy is expected to rise by a few decades(!) There is no question that this revolution has only just begun, and technology will continue to be the most important force driving growth and disruption of industries as we know them. The time to invest in venture is, yes, now.

2) Technology is the most powerful tool with which to fight critical burning issues like climate and food security. Nations are expected to keep pushing for technological breakthroughs and thus public funds are expected to continue being abundant. In a slowing economy, it's important to have this kind of wind at our backs. The time to invest in venture is, yes, now.

3) Valuations are balancing out. Like any down cycle, it will be used to drive efficiency, getting rid of the “fluff”, the “fat”, reassessing budgets and balancing out forces and relationships between founders and investors. This is good for investors and ultimately for the sector. The time to invest in venture is, yes, now.

4) Let's talk inflation. Even though investing in VC is high risk (0/1 game) it is very much inflation hedged.

The logic is simple:

Let’s say you hit the right startup (or 2 out of 10 in your portfolio). How will this investment perform inflation wise?

Well, if you invest today in tomorrow’s tech, tomorrow’s tech, by definition, will be worth its intrinsic economic value 10 years from now, which means it will not be eroded by time or inflation. Quite the opposite, it will be worth its fully appreciated potential in the future market valuation/prices. Can’t beat that. The time to invest in venture is, yes, now.

what do you think?

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