Venture Capital’s Reckoning Looms Closer

I wrote today's Market Insight column for the Financial Times. I've included the first paragraphs and a link to the full piece below.  

Venture Capital's Reckoning Looms Closer

Valuations on holdings will have to converge sooner rather than later with listed tech sector

After about a decade of significant outperformance culminating in a Covid boom, technology investors faced a sharp reversal this year. By the end of June, Nasdaq was down 29.5 per cent and the Goldman Sachs Unprofitable Tech index was down 52 per cent.

Yet one corner of the tech market was strangely unaffected. The US Venture Capital index compiled by Cambridge Associates was down only 12.5 per cent through the end of June (the last available data).

This gap between private markets and public markets is the largest since the bursting of the dotcom bubble more than two decades ago.

Click here to read the full article

Acknowledgment: Verdad intern Nick Sertl contributed to this piece. Nick previously worked on the investment team at Harvard Management Company for four years. While currently consulting for Verdad, Nick is pursuing a full-time position in public equities investing.