Venture Capital: Investing in Intelligence
Beeneet Kothari, managing partner at Tekne Capital, welcomes Joe Lonsdale, partner at 8VC, to discuss public markets, growing tech companies, and Covid-19. Lonsdale argues that the technology sector will experience continued growth as investors and policymakers recognize its important role in maintaining the global economy during the Covid-19 crisis. Lonsdale draws on his experience as a co-founder of Palantir to explain the unusual growth pattern that disruptive technology companies can experience as their business is understood by more investors. Lonsdale and Kothari also examine the Federal Reserve’s response to inflation and its effect on the valuations of new companies. Furthermore, Lonsdale describes the impact of large inflows of money that allow him to secure cheap capital and continue innovating in the startup space. Filmed on May 25, 2021.
Key Learnings: Lonsdale argues that effective venture capital portfolios are constructed with time, stage, and sector diversity. He believes that venture capital is currently the best investment because it focuses on investing in the smartest people that run the best companies striving to solve difficult problems.