![]() ![]() In the 1980s and ’90s, technology helped spread democracy. In the 1950s and ’60s, technology took us to space. But where was the cure, or the better protective gear, and why hadn’t venture capital-the financial engine of innovation-funded those ideas? Was venture capital producing the kinds of inventions society needs? Sure, when we have to (or want to) stay home, Zoom helps us work remotely, DoorDash keeps us fed, and Netflix gives us something to watch. And suddenly, the questions became more urgent. I wanted to know what was going on.Īs covid-19 took hold of the world, my plans to meet Gray and his peers changed. By the end of 2019, the industry had $121 billion in “dry powder,” money in search of an entrepreneur or idea to invest in. Recently, venture capitalists have found fewer and fewer ideas that fit their preferred pattern. But they don’t create many jobs for ordinary people, especially compared with the companies or industries they disrupt. This largely white, largely male corner of finance has backed software companies that grow fast and generate large amounts of money for a shrinking number of Americans-companies like Google, Facebook, Uber, and Airbnb. Not all the numbers were so positive, however. But investors are finding fewer ideas that fit their preferred pattern. Venture capital has been the engine of US innovation for years. Many stats suggested it was: the number of venture capital firms in the US had risen from 946 in 2007 to 1,328 in 2019, and the amount of money they were managing had swollen from $170.6 billion in 2005 to $444 billion in 2019. I was going to Demo Day because venture capital had been America’s financial engine of innovation for years, and I wanted to see if that was still true. ![]() The event would host 1,000 investors and introduce them to nearly 200 vetted and prepped startups from around the globe. ![]() I was scheduled to fly out to California in March to attend the startup accelerator Y Combinator’s famous Demo Day. I had originally planned to meet Gray in person. It didn’t seem like a great time to be raising money. “A Torrent of Job Losses Threatens to Overwhelm the US Economy.” “Doctors Say Shortage of Protective Gear Is Dire.” “Coronavirus Hitting Homeless Population.” As I listened to Gray explain what he was doing, headlines were washing over America. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |