OK, so we just quoted Warren Buffet, there is a reason.
After a record breaking year for venture capital fundraising in 2021, money pouring into private startups seems to be slowing down after the first quarter of 2022. So far, the dollar-amount of funding for U.S. based start-ups has shrunk, despite the number of venture capital deals being higher than the same quarter last year. Mega-round funding is down 30% from last quarter, and it’s down in every sector except for angel investors, who tend to be most active in the early stages. Asset or investment management companies, corporations and corporate venture funds, private equity, and venture capital investors have all scaled back the size of deals they are signing.
Seismic is different, and our timing seems to be fortuitous. We are structured more similarly to a privately held firm like Berkshire Hathaway (Warren’s firm) than a typical venture fund. Also, we have no legacy assets where we may have overpaid. We are inches from our first investments, and that is great timing.
All this being said, if you are listening to the advice of Warren Buffet, now may be the time for investing in venture capital! We are a growing company, still seeking seismic startups to support and add to our portfolio. With no legacy assets holding us back or diverting our attention, we are investing in today’s valuation climate. That means taking into account the demand for new technological solutions to the problems of the new normal posed by the pandemic.
Because we are seeking out Seismic change, we’re not concerned with following hot trends, we are looking for tomorrow’s megatrends and the companies that want to change the world and reshape their industries. Our rigorous due diligence process is set up to assess the long-term prospects of a company by taking into account factors such as ESG standards, and strength of their management team. Our diversification of companies, industries, and stages will help to minimize risk for our shareholders, while we set up the potential for massive returns by supporting what we calculate to be the next unicorns.