In this episode of Nothing Ventured, host Aarish Shah welcomes Jeff Crusey, a partner at 7% Ventures and seasoned VC with extensive experience in deep tech and startups. The discussion explores the limits of software functionality and usability, the implications of the UK’s approach to de-risking venture investments, and whether US VCs are fostering monopolies. Jeff shares insights on the impact of SEIS and EIS on UK VC numbers and contrasts rent-seeking behaviours with genuine value production in the business landscape. They also debate the necessity of new neobanks and question the concentrated power within the US VC industry. Finally, Jeff expresses his contrarian view on space exploration, arguing against sending people to Mars. Tune in for a thought-provoking conversation on the current state and future of venture capital.
00:00:00 - Introduction to Jeff Crusey
Welcome to the episode featuring Jeff Crusey, partner at 7% Ventures, discussing his background and expertise in deep tech.
00:02:01 - The Evolution of Deep Tech
Exploring why deep tech is gaining popularity now and comparing investment approaches in the UK and US.
00:05:36 - Mindset Differences in VC
Discussing the abundance versus scarcity mindset in US and UK venture capital.
00:08:18 - Challenges for UK Founders
Examining the risk aversion in the UK VC landscape and its impact on founders.
00:10:21 - The Flight of Talent
Concerns about UK founders leaving for the US and the implications for the local ecosystem.
00:12:13 - First Principles Thinking in VC
Jeff's frustrations with the lack of first principles thinking in the US VC ecosystem.
00:14:06 - FOMO and Market Dynamics
The influence of FOMO on investment decisions and the implications for startups.
00:15:51 - Capital as a Moat in Deep Tech
Discussing the importance of capital in deep tech and the challenges in the UK and Europe.
00:19:11 - The Role of Government Funding
Analysing the impact of SEIS and EIS on the UK VC landscape and the need for a clearer picture.
00:20:05 - Comparing Sovereign Wealth Funds
The differences between government-backed funds in the UK and Europe versus the US.
00:22:00 - Rent-Seeking vs. Value Production
Differentiating between rent-seeking companies and those that produce real value.
00:24:30 - The Neobank Phenomenon
Critiquing the proliferation of neobanks and their actual value proposition.
00:27:10 - US vs. UK Banking Systems
Comparing the banking landscape in the US and UK, and questioning the need for more neobanks.
00:29:18 - Concerns About VC Consolidation
Discussing the implications of VC consolidation and the potential for cartel-like behaviour.
00:31:12 - The Mythology of VC
Exploring how the narrative around VCs can distort reality and impact investment decisions.
00:34:31 - The Role of Founders in Value Creation
Highlighting the importance of founders in creating value, rather than VCs taking centre stage.
00:36:11 - Contrarian Conviction: Mars Exploration
Jeff's belief that sending humans to Mars is not sensible and the case for robotic exploration instead.
00:40:07 - The Future of Automation
Discussing the potential for fully automated manufacturing and the implications for human labor.
00:45:39 - Conclusion and Where to Find Jeff
Wrapping up the conversation and sharing where to connect with Jeff Crusey online.
Find Jeff online at:
LinkedIn: https://www.linkedin.com/in/jeffcrusey/
Twitter: http://www.x.com/@JeffCrusey
Web: https://www.7pc.vc/
This episode is sponsored by EmergeOne, fractional CFOs for venture backed tech startups from Seed to Series B.
Get in touch at https://emergeone.co.uk/contact-us/ or join the CFO team at https://emergeone.co.uk/join-the-cfo-team/
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