TLDR:
- Seed investing is in an odd place in 2024 with public valuations low but seed rounds expensive.
- Market flooded with capital, leading to higher valuations and unrealistic expectations.
Summary:
Seed investing in 2024 is facing challenges with limited founders capable of triple-digit growth. The best investments are those that grow rapidly from $1 million to $10 million in 5 quarters or less. However, high valuations due to the influx of capital have raised concerns about sustainability and profitability. Jason Lemkin discusses the importance of investing in exceptional founders and CEO teams, especially in competitive markets, to achieve significant returns. The impact of burn rates, revenue projections, and churn rates on startups is highlighted, along with the need for ultra-committed teams and successful product expansions. Lessons from successful and unsuccessful investments provide insights on choosing the right deals and avoiding common pitfalls in the venture capital landscape. Overall, the funding environment is challenging but offers potential for good deals if market conditions improve.
