This Week in Startups ANGEL: Insight's Deven Parekh on venture tourists, cleaning cap tables & winning investments | E1679
Feb 15, 2023
Deven Parekh, Managing Director at Insight Partners, shares his insights from navigating investment landscapes during the dot-com era and pandemic. He tackles the concept of 'venture tourists' entering late-stage investments and discusses the critical importance of cleaning up cap tables. Deven reflects on some of his winning investments while drawing parallels between today's cryptocurrency trends and the past dot-com boom, emphasizing the need for resilient business models amidst economic changes.
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Dot-Com vs. Today
- The dot-com bust differed from today's market because fewer companies had solid business models.
- Companies also lacked the capitalization seen today, making recovery harder.
Web3 vs. Dot-Com
- Unlike dot-com companies that offered better user experiences (even without sound economics), many Web3 companies struggle to do so.
- This raises questions about Web3's value proposition.
Pandemic-Driven Growth
- COVID-19 lockdowns created a surge in demand for certain products and services, like Peloton and Zoom.
- Many mistakenly assumed these changes were permanent, leading to overvaluation.