Nick Spiller of Capital Factory explains how hardware startups are reacting to supply chain bottlenecks by reshoring production.
Prediction Didn’t hold up
Spiller: There will be a recession by the end of 2023
“And that's kind of the expectation going into this year is by the time we're going out of this year, there will be a recession.”
Insight
Spiller: A VC's true customer is the LP, not the founder
“The investor's responsibility is to steward the investment. You know, the key word is like the investment, not the company, although they're very, you know, intertwined obviously in the success of the company is the success of the investment investor. Investor…”
Opinion
Spiller: India Has the Necessary Components to Match China's Manufacturing Scale
“And I think India has all of the, you know, necessary components to be a China, right? And, you know, all, you know, really just need to set up the infrastructure there and, you know, the trade relations.”
Insight
Spiller: VC fundraising cycles drive the startup push for valuation markups
“They need to generate high growth to justify a 10 X, 100 X return on their investment in these companies to go raise money for their next fund. Right. And it's like a lot of these investors, they're raising money too. And so, you know, they need to see you gro…”
Insight
Spiller evaluates startups based on cash flows, data, and technology
“I think there's three buckets in which investors value companies.
They value your cash flows, your revenue, your profits.
they value your data and, you know, your customer information and everything, the data surrounding that.
And they value your technolog…”
Assertion Not checkable as stated
Spiller saw one same-day investor commitment across 10,000 interactions
“I think I've seen it once. Like at least, I mean, thousands, like, you know, probably 10,000 interactions I've, you know, have brokered.”