Jennifer Fonstad, co-founder of Aspect Ventures, provides a deep dive into the 2018 venture capital landscape, highlighting the abundance of early-stage and growth capital but a critical gap in funding for startups transitioning between these stages. She explains how Aspect Ventures strategically invests in the "picks and shovels" of emerging technologies like blockchain, rather than directly in speculative assets, and discusses the exciting potential of data-driven advances in healthcare. This episode offers valuable insights for ecommerce operators seeking to understand venture funding dynamics and innovative investment strategies.
Key takeaways
The venture capital market in 2018 shows a 'chasm' where startups struggle to secure funding between seed and growth stages, leading to many failures. Entrepreneurs should be aware of this funding gap and plan accordingly for their growth capital needs.
Aspect Ventures' strategy of investing in the 'picks and shovels' of blockchain technology (e.g., infrastructure, tools) rather than the volatile cryptocurrencies themselves, offers a valuable lesson in de-risked innovation investment for businesses exploring new tech.
Data-driven advancements in healthcare are a key area of excitement for VCs; ecommerce operators in health and wellness niches should consider how they can leverage data to create innovative solutions and attract investment.
Fonstad's 17 years at Draper Fisher Jurvetson and subsequent co-founding of Aspect Ventures illustrates the evolution of VC thinking, emphasizing adaptability and identifying underserved investment areas.
Understanding the decision-making processes of venture capitalists, including their focus on market fit and scalability, is crucial for any entrepreneur seeking external funding.
Aspect Ventures co-founder Jennifer Fonstad talks with Recode’s Kara Swisher about how venture capital works in 2018, when Silicon Valley entrepreneurs have access to more money from more sources than ever before. But that that money is not spread out evenly, Fonstad says: There’s a lot of very early “seed” dough, and a lot available to help succeeding companies grow bigger, but not enough to help them cross the “chasm” in which so many startups fail. She also talks about her 17 years as an investor at Draper Fisher Jurvetson, why Aspect is betting on the “picks and shovels” of the blockchain instead of currency, and why she’s excited about data-driven advances in health care.
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What does this episode say about finance & fundraising?
The venture capital market in 2018 shows a 'chasm' where startups struggle to secure funding between seed and growth stages, leading to many failures. Entrepreneurs should be aware of this funding gap and plan accordingly for their growth capital needs.
What does this episode say about founder & leadership?
Aspect Ventures' strategy of investing in the 'picks and shovels' of blockchain technology (e.g., infrastructure, tools) rather than the volatile cryptocurrencies themselves, offers a valuable lesson in de-risked innovation investment for businesses exploring new tech.
What does this episode say about ai & automation?
Data-driven advancements in healthcare are a key area of excitement for VCs; ecommerce operators in health and wellness niches should consider how they can leverage data to create innovative solutions and attract investment.
What does this episode say about finance & fundraising?
Fonstad's 17 years at Draper Fisher Jurvetson and subsequent co-founding of Aspect Ventures illustrates the evolution of VC thinking, emphasizing adaptability and identifying underserved investment areas.
What does this episode say about finance & fundraising?
Understanding the decision-making processes of venture capitalists, including their focus on market fit and scalability, is crucial for any entrepreneur seeking external funding.
