Deeter: Private market lag will slow venture deal pace
Byron Deeter · The Current State of Venture Capital and Cloud | SaaStr Software Community · Mar 27, 2020 · at 7:45
Bessemer partner Byron Deeter explains why venture capital deal velocity slows down following sudden public market drops.
0:00 / 0:08exact quote · 8.5s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“It will take a while for the private markets to adjust to what we've seen very rapidly happen in the public markets. And I think that's going to impact deal pace as well.”
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 Byron Deeter
Deeter: Cloud leaders are superseding FAANG as tech growth drivers
“Our thesis internally is that those horizons and the growth rates of those markets are starting to pull back, and that you see a changing of the guard. And it's really the cloud basket, and we pulled out six names in particular with Microsoft, Twilio, Shopify,…”
Deeter: Microsoft Azure could challenge AWS for top cloud slot
“At this rate, it is quite possible that Azure competes for AWS for the top slot in the coming years. And we're already seeing signs of that on the enterprise side specifically.”
Deeter: Claims of 'business as usual' in VC right now are crap
“I think the idea that it's business as usual is, is crap. I don't think any venture firm is approaching it that way. And I think anyone that's suggesting that is, is misleading at best.”
Deeter: Second-tier debt lenders recalled lines in 2008, killing a startup
“In oh eight, we did see several venture debt providers, not the tier one folks, but the level below them block lines or recall lines. And in, in one very painful case in our portfolio, it killed the company, a company that should not have died because of the c…”
Deeter: New and fringe investors in venture and debt will suffer the most in downturn
“So I think the, it's safe to assume that the new entrance or the fringe entrance in most cases are going to be the ones most impacted. That applies to venture firms, debt firms, corporate venture firms, et cetera. There, there's even potentially the crossover …”
Deeter: Economic Impact Will Be Worse Than Expected, Extending Into 2021
“I do believe the economic impact from this is going to be unfortunately more significant when than people are digesting yet. And this could take several quarters and well into next year for the overall economy to get started again.”