Shu Nyatta is Managing Partner at Bicycle Capital. He explains why mid-sized Latin American startups benefit from local listings rather than listing on US exchanges.
Insight
Nyatta: Early-Stage VCs Prioritize Quick Markups Over Durable Businesses
“BCs want to mark up the company. Often that's the goal, especially if you're at the early stage, right? You want the A to be lower than the B by some margin, and then you want to raise a new fund on the back of the B or C. That's a very different goal from the…”
Opinion
Nyatta: Exploding Term Sheets Are Nonsense and Deal Speed Is Overvalued
“I think we've fetishized moving quickly, and it's just not that valuable especially at the growth stage, but I think even at the early stage, the whole idea that I have an exploding term sheet that's going to expire this Friday, first of all, is nonsense. Term…”
Disclosure
Nyatta: Bicycle Capital Targets 2x-4x Returns Rather Than 10x-20x
“Growth is different from early stage. Not every investment has to have the potential to be a fund returner. You could have every investment have the potential to be somewhere between two and four X in growth, and that's great. So if you speak to LPs, the expos…”
Prediction Not checkable as stated
Nyatta: Indexing and Trend-Chasing in VC and AI Will Fail
“Passive beta capture, you know, this whole idea that you just buy an index of tech, and you sit aside and let it perform, I think that's gone. I think you have to be a stock picker, and so people that are just trying to place a range of bets, I don't think tha…”
Disclosure
Nyatta: SoftBank Evaluated OpenAI Around 2017 but Passed on Investing
“So when we were at SoftBank in 2017, I think thereabouts, MASA, correctly, was all over AI, and the team was small enough that we were all focused on the topic and looking around at what was interesting and being built in the world of AI, and we came across Op…”
Insight
Nyatta: Great Founders Demand the Truth, Average Ones Want Isolation
“Average founders want to be left alone. Good founders want to be coached. Great founders want to hear the truth. Great founders do not want to be left alone, and often just having a reflection in the form of a really good board meeting.”