Our sense is that the downturn in VC investing is not as traumatic as past cycles and may start to improve in a few months. That being said, the environment for LPs investing in VCs remains mired in amber as everyone tries to figure out the value of money
Hardware will constitute 60% of “Technology” revenue over the next five years, but has received only 10% of venture investments over the past five years. US investors need to pick up the pace to fix that imbalance.
Despite conventional wisdom, building a software company can be just as capital intensive a building a semis company. With the huge disparity in valuations at every venture round, it is clear that there can be a massive opportunity in semis investing.
China is outpacing US VC investments in semis by 6:1, but so much of the future of technology and the economy is dependent on semis. Now is a great time to be a US Deep Tech venture investor.