“The best companies are built in recessions”

As an investor or entrepreneur we often hear this sentiment with reference to AirBnB and Uber in ‘08/’09, and legacy tech companies that emerged from the carnage of 2000 dot com bubble stronger than ever (Amazon, Netflix, etc.).

As the U.S. economy slides towards recession (1Q22 GDP down 1.4%), we should turn to hard earned wisdom that applies to our current paradigm. What is it about these tough environments that can create enduring businesses?

• Stress leads to growth

  • Like most systems that occur in nature, a bit of stress can lead to new muscles or new neural path ways. A company is no different. Challenging macro environments force management teams to focus on their core business problems. Improving their products and winning deals.

• War for talent subsides

  • In the world of software there is a perpetual challenge to hire quality engineers. While the advent of remote work mitigates this problem in theory, it remains a competitive field. During downturns many large companies have layoffs. This presents an opportunity for smaller, less well capitalized companies to hire great talent that would have otherwise been unavailable.

I am a VC investor focused on B2B software and sustainability. Curious to learn what the community finds valuable. Below are some topics that I can write on. Let me know if any of them would be of interest to you!

• Venture capital fundraising tips (from an investors perspective)

• Macro market analysis and links to helpful research and podcasts

• New developments in the world of sustainability / climate tech

• Analysis of high flying startups that the community recommends

• Book club style summaries of what I’m reading and what the nugget of wisdom is from each book

• Latest psychology studies and how they inform investor behavior