The atmosphere of sheer panic among VCs these days is disconcerting. If I was an LP, I would be sitting on my hands right now. Up and down the capital stack, people have lost their wits, if not their minds.
How do I know? Two things: (1) speed and (2) strategy drift.
(1) Speed. Things are moving so insanely fast there is literally no way anyone is doing any due diligence or actual research at all. No one is asking hard questions. Since "everything goes up and only up" better go faster.
(2) Strategy drift. No one (large or small, late or early) is sticking to their stated strategy. Everyone is in everyone else's lane, operating outside their zones of competence. Why? Because no one has confidence in their own strategy - and everyone else is in their lane too...
VCs which are supposed to be capital allocators have become capital shovellers, and speed is the only measure of success. As long as everything is getting marked up, there is no reason not to speed up. It just brings the mark-ups closer.
Everyone is afraid to say no to anything - regardless of quality and regardless of strategy fit.
To be clear: many of these investments will be brilliant and market opportunities are bigger than ever....but as an asset class, we are at a dangerous place. Occasional $10B+ outcomes are being used to justify all sorts of irrational behavior.

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More from @gdibner

8 Apr
Index closes $200 million dedicated seed fund to intensify multi-stage thesis via @techcrunch
@TechCrunch What I love about this is the framing. Index's roots were in taking early stage bets on European startups when almost no one else believed Europe could generate great VC returns. But Index did.
@TechCrunch Index was early and high-conviction. And it seems Origins is returning Index to those roots.
Read 6 tweets
19 Mar
I'm not sure this is true, but I am starting to think it might be. Thesis: seed funds and "accelerators" basically can no longer work together. Choose one path and you self-select out of the other.
The best seed funds, like Angular, have gotten pretty good at adding a ton of value and connecting portfolio companies with customers and investors. We're willing to write big checks and build great syndicates - and in many cases, we add a lot of signaling power.
If you have a great seed fund onboard, you don't really "need" the benefits of an accelerator - and they are probably not worth the significant dilution that they involve. The seed funds should get you to the Series A.
Read 14 tweets
11 Mar
Secret of early-stage investing in a four easy steps:
1. Develop a strong internal sense of what "truly great" looks like. This is the key step. Get this wrong and the rest is irrelevant. Here you must be intellectually honest and very humble. "Truly great" is a matter of fact not opinion. A matter of past not future.
The best way to do step 1 is to encounter truly great. Work at a company that is truly great. Work at a VC firm that is truly great and invests in companies that are truly great. Constantly ask: "did I earn the right to this opinion about greatness?"
Read 8 tweets
9 Mar
Angular Ventures is super excited to release our 2020 Data Deck on Enterprise & Deep Tech VC Investment in Europe & Israel. 73 pages of proprietary data & analysis. (Thank you @poetential for all the hard work here!) Image
@poetential You can find the full report (downloadable) on medium/docsend here:…
As with everything, this is a massive team effort. Andrew @poetential Posaste did an amazing amount of work on this. Couldn't have done it without. Thank you, Andrew! (Founders who haven't met him yet should reach out...) Image
Read 32 tweets
27 Apr 20
People seem to going absolutely bananas about an Israeli proposal to establish an age-based and points-based system for Coronavirus release.
Regretfully, I mistakenly characterized this as a "policy" as opposed to a "proposal" in a twitter thread that has absolutely exploded (nearly 700K views - completely insane).
Again, let me add the necessary caveats that I am CLEARLY not an expert on anything related to Coronavirus. That said, I think it's worth highlighting a view things:
Read 17 tweets
26 Apr 20
Woke up to good news from Israel on ending the Coronavirus lockdown this morning, which I think should be shared widely in English.
With the appropriate caveats that I am not an expert in any relevant field, here's my best understanding of what the Israeli government is doing to end the lockdown:
Israel has had ~200 deaths and ~15,000 confirmed cases so far. It was early to close flights and impose lockdowns.
Read 17 tweets

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