Verma: VC-subsidized customer growth in B2B will not convert to profits
Sameer Brij Verma · Episode 50 | Sameer Brij Verma, Nexus Venture Partners · Feb 14, 2020 · at 49:36
Sameer Brij Verma of Nexus Venture Partners critiques growth-at-all-costs models lacking sound unit economics.
0:00 / 0:28exact quote · 28.6s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“Otherwise there will be flare ups and blow ups because these companies can't raise money because they don't have an economic model. So there's a lot of subsidization of the customer, which is happening right now by burning through a lot of money. And that's not a sustainable thing, especially in spaces like B to B and, you know, certain other spaces, the subsidy economy is, which is going on right now, showing a lot of traction, which is great, but that is not necessarily going to convert. That scale is not necessarily going to convert into a solid P and L.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Sameer Brij Verma
Verma: Decacorns relying only on capital as a moat will not endure
“I think there are a lot of crappy companies out there, if you ask me. They just, they all position themselves as decacons and there are no moats in their business other than capital is the competitive advantage. The day that goes away, they're not building a g…”
Verma: Most Indian unicorns would collapse without external funding
“If you take out, I think the unicorns in the country, if you take out the external funding today, I don't know how many people, how many of them will stand up on their feet. They can't. That to me is a big, big, big, big red flag.”
Verma: My investments have returned the entire fund in every fund I've joined
“Every, every fund that I've been a part of so far, my investments have kind of returned the capital of the entire fund.”
Verma: Nexus Fund IV looks likely to return over $350M
“We will, it looks very, very, very possible that we will return over three, fifty million dollars of capital from that.”