Zandiyeh: Tech startups face lower expropriation risk than frontier industrial assets
Kiyan Zandiyeh · Kiyan Zandiyeh – Empty Rooms: Venture Capital on the Emerging Frontier at Sturgeon Capital (Capital Allocators, EP.317) · May 25, 2023 · at 26:53
Kiyan Zandiyeh, CIO of Sturgeon Capital, explains how tech venture capital mitigates political and governance risk compared to traditional private equity.
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“The difference is that you have a tangible asset that it relatively is operationally simple to run. There's a positive correlation between the success of it and the willingness of the government to ultimately want to take it off you at some point in time, because there is a real underlying tangible asset that they can take. It's pretty easy to install someone that can run it and generalizing. You can have governance concerns. If you translate it into on a technology side, one, you're not dealing in tangible assets. There's intangible assets. There's no land. There's nothing really to take to their operationally complex businesses to run”
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