Source - https://alexdanco.com/2020/02/07/debt-is-coming/
TL;DR - VC thought leader Alex Danco outlines his views on the way debt financing will become increasingly prevalent in VC.
Helpfulness - 3
Tags - notable investors, thought leaders, funding trends, debt, useful diagrams
Questions addressed:
- Who is Alex Danco?
- What is his role as a VC thought leader?
- What are his views on future trends in fundraising?
Summary:
- Alex Danco is a former VC at Social Capital who now works at Shopify Money.
- He acts as a VC thought leader through his weekly newsletter.
- Danco predicts the biggest change in next decade will be debt coming to the tech world.
- The tech world may be reaching a turning point where future cash flows and costs of capital become more predictable for investors and operators respectively.
- The SaaS recurring revenue model seems relatively stable and mature.
- This looks more like regular finance than VC.
- Recurring revenue models almost seem like fixed income yielding securities.
- Equity only works for one narrow vision of success; founders may begin to demand more.
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