Some deep tech companies get caught in a cycle of hype and overpromising, raising large amounts of money and failing to find product market fit. Taking money from investors like Softbank can exacerbate this problem, leading to someone becoming the "bag holder."
The valuation of a startup before a functional product is usually lower, and investors engage in milestone-based investing where proof of progress scales the amount of money raised. For a series A, revenue is necessary.
The speaker predicts that Asian American college applicants will be the biggest political winner going forward, partly due to recent legal proceedings related to affirmative action.
Zapier is a $5 billion company that raised only $1 million in funding to achieve $60 million ARR, and is now probably worth $10 billion, according to Jason Calacanis.
The speaker reflects on the evolution of angel investing and offers some advice for individuals looking to make a start in this field.
The trial of Elizabeth Holmes and the fall of Theranos brings up questions about the potential behavior shift of entrepreneurs and investors in the startup industry. The fear of not meeting forecasts and stretching the truth to acquire capital may become an incentive for some founders.