Market Risk
topic on 6 shows · 11 statements across 11 episodes
the Y Combinator Startup Podcast 
In Depth 
Masters of Scale 
Top Founders 
All-In 
20VC
11 statements about Market Risk, every show
Chaudhary: Market risk is the most exciting startup risk
“It's actually the most exciting form of risk where there's one or two assumptions that if you are wrong about, or if you're right about as an entrepreneur, you suddenly unlock an enormous market that no one knew was there.”
Song: Identity startups face execution risk, not market risk
“Like I always tell whenever someone new joins, I never tell them like, oh, we have a market risk, like just identity is not a market risk company. It's fundamentally really an execution risk and it's a very high Execution risk because the idea is just so obvio…”
Naval Ravikant: Founders should take technical risk over market risk
“I want to take on more technical risk and less market risk. This is the classic VC learning, right? Which is you want to build something that if people Get it. If you can deliver it, you know, people will want it. And it's just hard to build as opposed to you …”
Maples: Massive technical risk makes sense only if market risk is zero
“There are some companies that are trying to take out technical risk, and they're raising more money than ever before seen to try to do that. That only makes sense to do if the problem that you're solving is so important that there will be no market risk if you…”
Market risk is the most dangerous VC risk; the market always wins
“I think market risk is the most dangerous risk to underwrite. Even if with the greatest teams, teams can't fight market. Market always wins.”
Buchheit: Biotech risk is technical feasibility, not market demand
“The risk on those companies is, is, is most often not market risk. It's not the risk that no one wants a cure for cancer. The risk is that they don't actually have a cure for cancer, right? So, so with those companies, more often, it's one of these things wher…”
Josh Wolfe: Lux Capital is willing to take market and tech risk
“You have some firms that will say, we don't take market risk, and you have other firms that say, we don't take technology risk, and we'll actually take both.”
VCs accept execution and team risk but refuse to take market risk
“Almost all VCs will tell you they will take on execution risk. They'll even take on team risk. But they'll never take market risk, because that's the one thing they can't do anything about, which is why VCs tend to look for really big markets.”
Rachleff: Early-stage angel investing in software is a sucker's bet
“It's a sucker's bet. It's a terrible risk reward because you have all of this market risk, and there's no way to evaluate it.”
Tresidder: Investors do not have to accept constant market risk
“There's a presumption in conventional asset allocation passive approach to investing that you have to accept market risk at all times in order to get a market-based return, and that's simply not true.”