In the recent past, the venture capital ecosystem was dominated by a singular focus: growth at all costs. The era of"blitzscaling" - a term coined by Reid Hoffman to describe the rapid scaling of a company, in an effort to capture first mover advantages and market share as quickly as possible – was in full swing. Fuelled by abundant capital, start-ups were encouraged to grow aggressively, often with little regard for profitability or sustainable business principles.
This means making calculated investments in companies that may not be immediately profitable but are working on solving big, global problems - whether in technology, healthcare, clean energy, or other critical areas. These investments require patience and a long-term perspective, but they are also the ones that have the potential to generate outsized returns and make a significant impact on the world.
The future of venture capital lies in striking a balance between backing sustainable businesses and taking calculated risks on ventures and entrepreneurs that have the potential to change the world. Although hard to strike this balance right, by doing so, investors can continue to drive innovation while ensuring the long-term viability of the companies they support.Our community is about connecting people through open and thoughtful conversations.