Shu Nyatta is Managing Partner of Bicycle Capital. He explains the rationale behind naming their $500M Latin America growth fund Bicycle Capital.
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…”
Insight
Nyatta: Sub-$1B Tech Companies Should List in Brazil Over NASDAQ
“You don't want to be a sub-billion dollar company on the NASDAQ. You'll be a rounding error for people. But from, I don't know, five hundred million up to a few billion, you can list very comfortably in Brazil.”
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…”