The Bull Case for Venture Capital in a coming Bear market

COVID-19 was (and is) a black swan medical crisis, not a financial or economic one

A black swan medical crisis; not a systemic market failure

The bull was getting winded

This is not a tech-lash

“The market has not soured on tech companies per se; it has soured on wildly unprofitable tech companies with wobbly unit economics, unsound management practices, and still-unproven business models.”

Bear markets present exceptional opportunities to build great businesses

Bear markets ‘lower the volume’ so teams can focus

Bear markets typically generate better venture returns

“LPs that were spooked after the dot-com bust and sat out the 2002 — 2006 period missed the Consumer Internet/Web 2.0 wave and some of the best VC returns in a generation.”

In Summary: Tech innovation does not stand still

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Jonathan Tower

Jonathan Tower

Jonathan (@jonathan_tower) is Founder and Managing Partner at Catapult, a global early stage venture firm with assets in multiple geographies.