Chapter
The Importance of Portfolio Rehabilitation
35:35 - 40:08 (04:33)
Investors may no longer tolerate misallocations of capital to support poorly marked portfolios, demanding portfolio rehabilitation instead. Deferred mortality risk becomes a valuable concept for startups to consider to overcome the effects of a high graduation rate during previous boom times.
Clips
Startups need to prepare for high logo churn rates in the post-pandemic era and focus on free cash flow conversion to survive.
35:35 - 37:15 (01:40)
Summary
Startups need to prepare for high logo churn rates in the post-pandemic era and focus on free cash flow conversion to survive. They also need to take into account the high graduation rates from C to series A to series B that were inflated during the boom times.
ChapterThe Importance of Portfolio Rehabilitation
EpisodeE83: Market slide continues, and how to address Uvalde
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Investors are expected to demand portfolio rehabilitation from companies that are misallocating capital to support a poorly marked portfolio.
37:15 - 40:08 (02:52)
Summary
Investors are expected to demand portfolio rehabilitation from companies that are misallocating capital to support a poorly marked portfolio. Organizations may have to raise more money or cut costs and come out as the only company in the market to win the game.