In his role as managing partner at Notable Capital, Hans Tung brings a wealth of experience to the forefront, having been involved in GGV Capital’s investments in successful companies like Affirm, Airbnb, StockX, Square, and Slack. His extensive expertise provides a valuable lens through which to observe and analyze the current venture capital landscape.
When asked about his perspective on down-rounds, Tung maintains a long-term approach. He believes that temporary fluctuations in valuations are less significant than ultimately generating substantial outcomes. He emphasizes that the focus should be on scaling the business effectively and strategically.
Regarding the investing landscape, Tung observes that the trend from the second half of 2023 continues into the present. He cautions that founders should not compare themselves with outperforming sectors but rather concentrate on managing their own businesses effectively.
Tung also sheds light on the impact of the slowdown on VC firms. He acknowledges that firms influenced by their actions in 2021 have been compelled to slow down, which is unfortunate given the caliber of some of these investors. The indigestion resulting from high valuations in 2021 investments has led to a lack of liquidity, hindering the recycling of funds back to LPs and limiting their ability to invest in new opportunities. This, in turn, has negative consequences for the entire ecosystem.
Despite a recent decline in fintech funding, Tung remains positive about the sector. He points to the substantial market capitalization of public companies in the banking, insurance, and financial services industries, highlighting the significant growth potential for fintech companies. He believes that the low penetration and market cap of fintech companies will increase over time, presenting opportunities for future winners in the space.
