Notable Capital’s Hans Tung Discusses State of Venture Capital and Benefits of Down Rounds
The Venture Capital Landscape: A Conversation with Notable Capital’s Hans Tung
As we navigate the ever-changing landscape of venture capital, it’s essential to understand the perspectives of experienced investors. In this article, we’ll delve into a conversation with Hans Tung, managing partner at Notable Capital (formerly GGV Capital), on the state of VC and the potential benefits of down rounds.
The Dirty Phrase: Down Rounds
To some investors, "down round" is a term that evokes feelings of anxiety. However, for Hans Tung, it’s not necessarily a dirty phrase. In fact, he believes that down rounds can make sense in certain situations. According to Hans, "An IPO is actually just a milestone, not the end game. An IPO is the beginning of public investors being along for the ride." He emphasizes that when thinking about long-term valuations, up or down temporarily doesn’t matter as much as generating a big outcome at the end.
The Numbers: Down Rounds on the Rise
According to PitchBook data, by September 2023, nearly 11% of the year’s VC deals were down rounds. This trend suggests that more investors are starting to view down rounds in a different light. Hans’ perspective is not unique, and it’s essential to consider the potential benefits of down rounds in today’s market.
Fintech: A Sector on the Rise
Hans also shared his thoughts on fintech, a sector he believes has tremendous growth potential. He highlighted specific areas within fintech that excite him, such as digital payments and lending. When discussing the future of fintech, Hans emphasized the importance of innovation and disruption in this space.
The Evolution of Notable Capital
Notable Capital’s transformation from GGV Capital is a significant development in the world of venture capital. As part of this evolution, the firm has rebranded its U.S. and Asia operations as Notable Capital and Granite Asia, respectively. This change reflects the firm’s commitment to adapting to changing market conditions.
Changes in the Venture Capital Landscape
The venture capital industry is constantly evolving, with changes affecting various firms and individuals. Recently, we’ve seen significant developments at Founders Fund, Benchmark, and Thrive Capital, among others. Hans’ insights on these topics provide a unique perspective on the current state of VC.
A Conversation Worth Listening To
Hans Tung’s conversation with TechCrunch’s Equity podcast offers valuable insights into his thoughts on venture capital and the future of fintech. As we navigate the complexities of the VC landscape, it’s essential to listen to experienced investors like Hans, who can provide guidance on making informed investment decisions.
The Full Interview Transcript
For those who prefer reading over listening, the full interview transcript is available for download or streaming. We encourage readers to explore our archive of episodes and engage with the conversation further.
Conclusion
As we continue to navigate the ever-changing landscape of venture capital, it’s essential to stay informed about the perspectives of experienced investors like Hans Tung. His thoughts on down rounds, fintech, and the evolution of Notable Capital offer valuable insights into the current state of VC. We look forward to continuing this conversation and exploring new topics in future episodes.
About the Author
Mary Ann Azevedo is a senior reporter at TechCrunch, covering venture capital, startups, and entrepreneurship. With over 20 years of experience in business reporting and editing, Mary Ann brings expertise and passion to her work. You can follow her on Twitter at @bayareawriter.
About the Audio Producer
Theresa Loconsolo is an audio producer at TechCrunch, focusing on Equity, the network’s flagship podcast. With a background in communication and production, Theresa creates engaging content for our listeners. You can find her work on Apple Podcasts, Overcast, Spotify, and other popular platforms.
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Additional Resources
For more information on Notable Capital, GGV Capital, and the venture capital industry, visit the following resources:
