TL;DR
As private and IPO markets experience a resurgence, not all venture capital firms are sharing in the success. Jason Calacanis, an early investor in companies like Uber, highlights the challenges facing newer VC firms, with an estimated 15% unlikely to survive their next funding rounds. This 'correction' is attributed to the end of 'venture tourism,' where investors made flashy, undiscerning investments without sufficient due diligence. This change follows a period of excessive exuberance in the markets, where growth companies were overvalued without solid justifications. Calacanis argues for more rigorous research to avoid debacles like WeWork, which saw its valuation plummet from $47 billion to $44.5 million before bankruptcy. The shift towards more discerning investment practices suggests a healthier, although more challenging, future for the venture capital industry.
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