Radical Innovation Needs Old-School VC

7
Radical Innovation Needs Old-School VC


Scientists and entrepreneurs working on the world’s most urgent problems can’t solve them without funders who understand deep-tech opportunities and take long-term views.



Reading Time: 6 min 

Topics

Dan Page/theispot.com

When did risk capital start playing it so safe?

We currently have an abundance of venture capital for projects that are not that risky, such as platforms and apps that promise to make our lives more convenient. These innovations largely disrupt markets and competition — but don’t disrupt the biggest problems facing humanity. We don’t have enough green energy options, and we lack the technology that can suck enough CO2 out of the atmosphere to restore the climate’s balance. According to the United Nations, more than 800 million people — a tenth of the global population — are undernourished today. We don’t know how to cope with a growing world population or stop overexploiting natural resources.

The problem is that too several truly radical innovators suffer defeat in innovation’s valley of death: what we call that intermediate point where bootstrapping can’t get them any further, yet it’s hard to get the funds that are vital to further development and scaling. That dry stretch, during which the venture works on proving its concept to investors who want evidence they are making a good bet, is often too long for the venture to survive. In essence, this is a case of capital markets failing to support breakthrough innovations and deep technologies.

This has to change fast. While government has a role to play, so does venture capital. It’s high time for the high rollers in VC to shift from financing the easy digital-asset classes to funding more fundamental scientific and technical advancements.

Too several truly radical innovators suffer defeat in what we call innovation’s valley of death.

A return to venture capital’s roots might also promise bigger returns for the risk tolerant. Investments in asset-light companies, such as software-as-a-service providers or platforms, are now significantly riskier than they were in the 2010s because of increasing competition and low levels of innovation. Making a sufficient number of bets no longer works when a company’s valuations get so high that there’s no way its earnings will ever justify them, even if the business continues to grow at a healthy rate. At the same time, there’s a lot of excess money sitting around in the VC system that can and should be invested, but investors are waiting for interesting opportunities.

This money is known as dry powder in industry jargon.


Disasters Expo USA, is proud to be supported by Inergency for their next upcoming edition on March 6th & 7th 2024!

The leading event mitigating the world’s most costly disasters is returning to the Miami Beach

Convention Center and we want you to join us at the industry’s central platform for emergency management professionals.
Disasters Expo USA is proud to provide a central platform for the industry to connect and
engage with the industry’s leading professionals to better prepare, protect, prevent, respond
and recover from the disasters of today.
Hosting a dedicated platform for the convergence of disaster risk reduction, the keynote line up for Disasters Expo USA 2024 will provide an insight into successful case studies and
programs to accurately prepare for disasters. Featuring sessions from the likes of The Federal Emergency Management Agency,
NASA, The National Aeronautics and Space Administration, NOAA, The National Oceanic and Atmospheric Administration, TSA and several more this event is certainly providing you with the knowledge
required to prepare, respond and recover to disasters.
With over 50 hours worth of unmissable content, exciting new features such as their Disaster
Resilience Roundtable, Emergency Response Live, an Immersive Hurricane Simulation and
much more over just two days, you are guaranteed to gain an all-encompassing insight into
the industry to tackle the challenges of disasters.
By uniting global disaster risk management experts, well experienced emergency
responders and the leading innovators from the world, the event is the hub of the solutions
that provide attendees with tools that they can use to protect the communities and mitigate
the damage from disasters.
Tickets for the event are $119, but we have been given the promo code: HUGI100 that will
enable you to attend the event for FREE!

So don’t miss out and register today: https://shorturl.at/aikrW

And in case you missed it, here is our ultimate road trip playlist is the perfect mix of podcasts, and hidden gems that will keep you energized for the entire journey

-

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More