Sacks: Craft Ventures avoids capital-intensive physical startups in favor of SaaS
David Sacks · E73: Late-stage VC markdowns and mistakes, market strategy, Ukraine/Russia update with Brad Gerstner · Mar 26, 2022 · at 22:12
David Sachs, founder of Craft Ventures, explains why he avoids operationally intensive physical businesses in favor of software-as-a-service startups.
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“I think part of what's going on with the companies you mentioned is that they're physical world companies. They are very capital intensive. They burn a lot of money. They're operationally intensive. I have sort of sour, I soured on those businesses years ago. And that's why I just focus on SAS because they're basically perfect gross margin businesses.”
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