Who is Nnamdi

Musings on the economics of technology, entrepreneurship, and venture capital

The hottest Substack posts of Who is Nnamdi

And their main takeaways

The Venture Activity Index – Q4 2023

5 implied HN points • 07 Mar 24

💼 Business Investment Market Trends Economic Analysis Venture Capital

Capital deployment in venture activities is significantly below trend
The venture market has hit a low point and is not showing signs of recovery
All stages of venture investments are experiencing a downturn compared to their usual trends

The Series A Bust

11 implied HN points • 03 Jan 24

💼 Business Investment Technology Market Trends Startups Entrepreneurship

Investors now expect more but believe less in Series A as a sign of product-market fit.
Valuations for Seed and Series A stage companies have risen dramatically over the past decade.
The graduation or survival rate from Seed to Series A has significantly dropped recently, indicating a tough Series A environment for startups.

The Venture Activity Index

10 implied HN points • 25 Jul 23

💼 Business Venture Capital Market Analysis Economic Trends Investment Analysis

The Venture Activity Index measures the state of the venture business cycle using the Venture Activity Index (VAI).
Funding in the venture market is fluctuating around a linear trend with a consistent ~5% growth per quarter on average.
Correlations across different stages of venture investment have increased since 2020, with later stages experiencing more volatility than seed and Series A stages.

Don't Discount Interest Rates

4 implied HN points • 10 May 23

💰 Finance Interest Rates Venture Capital Market Analysis Economic Impact Investor behavior

Interest rates impact venture market activity significantly
Changes in interest rates affect deal flow, valuations, and funding levels
Understanding the impact of interest rates is crucial for navigating the venture market

The Shadow Price of Venture Capital

2 HN points • 14 Jun 23

💰 Finance Venture Capital Funding Valuations Investments Economics

Venture valuations are currently 60% higher than expected based on the amount of capital invested.
Valuations and capital invested in venture typically trend together, with one affecting the other.
The concept of 'shadow price' in venture capital highlights a discrepancy between actual transaction prices and hypothetical market-clearing prices.

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