John Borthwick, founder and CEO of Betaworks, discusses the structural misalignment between standard venture capital fund lifecycles and technological adoption timelines with host Harry Stebbings.
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“I think that they have to be longer. I think so. I do. Because I think that the fundamental trends that we are working, you know, the transformation that technology is driving in our society is much longer than that.”
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More from John Borthwick
Opinion
Borthwick: Venture capital industry suffers from widespread mediocrity
“There are extraordinary VCs out there. But there's also, I think, a lot of mediocrity in the business, and I think the returns overall in the VC business are indicative of a business that's going through change.”
John BorthwickMar 6, 2017▶ 10:2220VC: Betaworks' John Borthwick on Why The VC Model Is So Inefficient, Why Venture Fund Cycles Are Too Short & Why Frontier Tech Could Only Have Been Disappointing Over The Last Year
Insight
Borthwick: Tech startup power is shifting from product back to distribution
“I think in the last five to eight years, because of many of the reasons we discussed earlier, is distribution has been available through the app store, and so a lot of power has moved to product. I think it is now moving back to distribution,”
John BorthwickMar 6, 2017▶ 30:0020VC: Betaworks' John Borthwick on Why The VC Model Is So Inefficient, Why Venture Fund Cycles Are Too Short & Why Frontier Tech Could Only Have Been Disappointing Over The Last Year
AssertionSupported
Borthwick: Under 40% of YC and Techstars startups raise $750k within one year
“I believe the exact numbers are, is 36 for Techstars and 38 for YC.”
John BorthwickMar 6, 2017▶ 32:2920VC: Betaworks' John Borthwick on Why The VC Model Is So Inefficient, Why Venture Fund Cycles Are Too Short & Why Frontier Tech Could Only Have Been Disappointing Over The Last Year
Opinion
Borthwick: Time Warner Has Failed to Adapt to Evolving Digital Video Distribution
“They are not a technology company, and they've really struggled, you know, over the years to understand how they interface with new forms of distribution, new technology, and how they integrate that both into their business to make their business run better, b…”
John BorthwickMar 6, 2017▶ 5:2920VC: Betaworks' John Borthwick on Why The VC Model Is So Inefficient, Why Venture Fund Cycles Are Too Short & Why Frontier Tech Could Only Have Been Disappointing Over The Last Year
AssertionNot checkable as stated
Borthwick: Traditional VC has failed to adapt to market shifts
“And so I think that what we have today is that the market is actually changing and I can talk about that in detail, but I think that generally the market is changing and has changed over the last five, 10 years. And I think the VC hasn't adapted to that becaus…”
John BorthwickMar 6, 2017▶ 7:0520VC: Betaworks' John Borthwick on Why The VC Model Is So Inefficient, Why Venture Fund Cycles Are Too Short & Why Frontier Tech Could Only Have Been Disappointing Over The Last Year
PredictionNot checkable as stated
Borthwick: Conversational AI and frontier tech will take 5 to 10 years to mature
“Well, you know what? Is that I wouldn't have expected them to be anything but disappointing, because they are going to take, it is going to take five to 10 years for us to figure out how to talk to machines.”
John BorthwickMar 6, 2017▶ 20:2020VC: Betaworks' John Borthwick on Why The VC Model Is So Inefficient, Why Venture Fund Cycles Are Too Short & Why Frontier Tech Could Only Have Been Disappointing Over The Last Year
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