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"WHERE IS THE PUCK GOING?"
It’s a question we ask ourselves at CMBG Advisors. It’s a question we ask on our show. And it’s a question more and more people have begun asking us as the signs of economic uncertainty becomes increasingly prevalent.
In the world of venture capital investment, more companies are having to merge or liquidate. Over the last few months, there has been a sea change -- liquidity for follow-up rounds has diminished in a material fashion. Companies that six months ago were getting Series B or C rounds are now being told to either find a buyer or make their cash last indefinitely, the implication here of course being that the next follow-up round may never come. We are seeing this change across all industries, from apparel to housing to software. While the debt market is still available to profitable companies, even as interest rates rise, companies that are not yet profitable or haven’t yet proven their business model would do well to extend their cash runway as long as possible, as well as to consider making difficult decisions like reducing head count or other cash saving alternatives.
A Quick Note on Leadership
In the past week, since the death of Queen Elizabeth II, there has been much written about the role of monarchy. Whether you are a fan of royal power or not, I read two articles that described the importance of role models. I especially like a quote cited by both David French and Andrew Sullivan , then repeated by Sam Harris, from C.S Lewis, in his essay “Equality" for The Spectator from August 1943 . “Where men are forbidden to honor a king they honor millionaires, athletes, or film-stars instead: even famous prostitutes or gangsters. For spiritual nature, like bodily nature, will be served; deny it food and it will gobble poison.”
Character matters. As a society we have to do a better job teaching and promoting quality character by raising people up who care about their communities, exemplify personal sacrifice, and understand the concept of obligation. As I have said before, we are each called to do the work and become the best versions of ourselves.
We shouldn’t expect more of our leaders than we expect of ourselves.
CATCH UP ON RECENT PUCK EPISODES
https://podcasts.apple.com/us/podcast/episode-45-sir-paul-collier/id1338978270?i=1000568250010
On this episode, Jim sits down with Tyler Norwood, managing partner at Antler, a global firm focused on early stage investment. Tyler takes us through his background, from moving to Vietnam, to his work in the fashion e-commerce space, and eventually getting what he calls “a real world MBA,” launching Antler across Southeast Asia. He speaks about how he and his team connect founders and investors, untimely working their hardest to put young companies in a position to succeed.
https://podcasts.apple.com/us/podcast/episode-46-anna-barber-of-m13/id1338978270?i=1000571206232
Stanford University Professor Greg Walton, a social psychologist who specializes in studying the development of young people. offers some fascinating insights on this episode. Professor Walton works on what he calls “wise interventions” that can be implemented to help young people succeed. He talks about the myths surrounding our heroes, how a community can help build up its individual members, and how we can all be more effective communicators.