Why VCs Ghost Founders, or Reject Deals and Never Speak to the Founder Again
Venture capitalists often ghost founders due to the overwhelming volume of pitches they receive, leading to a lack of time for personalized responses. Factors such as an increasingly transactional culture in the investment landscape and the emergence of AI-generated outreach further exacerbate the issue, making it challenging for genuine pitches to stand out. Additionally, behaviors such as dishonesty or a lack of self-awareness can decisively end conversations, as VCs prioritize transparency and the ability to acknowledge risks.
This phenomenon highlights the importance of effective communication and relationship-building in the fundraising process, suggesting that founders must adapt their approaches to resonate with busy investors.
What strategies can founders implement to ensure they leave a lasting, positive impression on potential investors who may be overwhelmed by numerous pitches?
Despite a decline in venture capital funding for women-founded startups, which dropped by 12% in 2024, the report found that female founders are increasingly successful in deep tech sectors. According to Female Foundry's report, women who founded deep tech startups are raising more than men in this area, and these startups are securing significant investments. The report also highlights areas of innovation such as synthetic biology, generative AI, and drug development.
The growing success of female founders in deep tech indicates a shift towards valuing diversity in the venture capital industry, but it remains to be seen whether this trend will translate into more equitable funding for women-founded startups across all sectors.
What role can academia play in empowering more women to pursue entrepreneurship, given that the report suggests there is still a stigma attached to leaving an academic environment to start a startup?
The funding landscape for startups has been both exciting and polarizing this week, with several notable deals closing to varying degrees of acclaim. On one hand, Proxima Fusion secured significant backing for its fusion power project, lending credibility to its ambitious plans. On the other hand, Y Combinator's mishandling of Optifye.ai's demo sparked widespread criticism, highlighting the importance of responsible marketing and communication in the startup world. Meanwhile, Inception's large language model breakthrough has generated considerable buzz, with many predicting a potential shake-up in the AI landscape.
The disparate reactions to these funding rounds suggest that the startup ecosystem is increasingly polarized, with some companies enjoying unwavering support while others struggle to find traction.
How will this growing divide between successful and struggling startups impact the overall diversity and health of the startup community?
Sequoia's managing partner Roelof Botha has issued a warning about the dangers of special purpose vehicles (SPVs) in venture capital, where less sophisticated investors are likely to get hurt. The structure allows startups to sell access to shares to others at inflated prices, which can lead to astronomical valuations for some investors but not necessarily the startup itself. Botha's warning comes as SPVs become increasingly common in AI investing, with major companies like Anthropic and Figure AI relying on them.
The emergence of SPVs highlights the need for more scrutiny of venture capital deals, particularly those involving high-growth startups, to prevent investors from getting caught up in a cycle of inflated valuations and failed investments.
How can regulatory bodies and industry watchdogs effectively address the risks associated with SPVs and ensure that venture capital practices prioritize long-term sustainability over short-term gains?
This week in the startup world saw a mix of triumphs and trials, with some companies achieving significant revenue milestones while others faced legal challenges. Notable highlights include fintech startup Ramp doubling its annualized revenue to $700 million and Gong surpassing $300 million in annualized revenue, positioning itself for a potential IPO. Meanwhile, emerging companies like Ataraxis AI and Grain are addressing critical issues such as cancer treatment predictions and foreign exchange volatility with new funding rounds.
The contrasting fortunes of startups illustrate the volatile nature of the tech landscape, where innovation and adversity often coexist, shaping the future of various industries.
What strategies can startups adopt to mitigate risks while pursuing aggressive growth in such a competitive environment?
A seller on Reddit shared how their "dream home" deal collapsed after the buyers pulled their offer for an unusual reason—one bad interaction with a neighbor's 6-year-old. The original poster explained that they received an offer on their home, which was only two years old, but ultimately lost out due to concerns about another potentially difficult neighbor situation. Despite efforts to reassure the buyers, including speaking with the neighbors and offering to address any issues, the deal fell through.
This incident highlights the often-overlooked impact of children's behavior on adult property decisions, underscoring the need for more comprehensive community engagement strategies in real estate transactions.
How can homeowners, agents, and regulatory bodies work together to mitigate the effects of childhood tantrums on residential sales and ensure a smoother home-buying process for all parties involved?
Warren Buffett remains skeptical of cryptocurrencies, citing their extreme volatility and the speculative nature of investor sentiment surrounding them. He has famously referred to Bitcoin as "rat poison squared" and expressed certainty that cryptocurrencies will ultimately face a negative outcome. Despite a minor indirect investment through Berkshire Hathaway in a Brazilian banking firm with a crypto platform, Buffett's fundamental views on the asset class have not changed.
Buffett's consistent stance against cryptocurrencies highlights a broader debate on the value of speculative investments versus traditional, fundamentally driven assets, reflecting the differing philosophies of investors in today's market.
What might it take for seasoned investors like Buffett to reconsider their stance on cryptocurrencies in the face of evolving market conditions and technological advancements?
In 2025, three significant opportunities are poised to reshape the business landscape, focusing on AI agents, personal branding, and their combination for innovative growth. The article emphasizes that these opportunities are accessible to anyone, regardless of their current experience level, and highlight the importance of solving specific problems for defined audiences. By leveraging these trends, individuals can position themselves for success in an increasingly competitive market.
The intersection of technology and personal narrative suggests a shift in how businesses and individuals connect with their audiences, potentially redefining traditional marketing strategies.
In a rapidly evolving digital environment, how can individuals effectively balance authenticity and strategic branding to maximize their impact?
Jim Cramer highlighted Robinhood Markets, Inc. during a recent CNBC appearance, emphasizing the platform's growth in trading zero-day options, which are becoming increasingly popular among professional traders. He noted the low-risk nature of these trades and the significant impact they have on stock prices, suggesting that momentum is driven more by options than by underlying fundamentals. Cramer also discussed the broader implications for companies reliant on a narrow client base, advocating for diversification to mitigate risks associated with heavy dependency on a few major clients.
Cramer's insights reflect a shifting landscape in trading strategies, where innovative financial products are reshaping market dynamics and trader behaviors, challenging traditional investment principles.
How might the rise of zero-day options influence the future of trading platforms and the regulatory environment surrounding them?
Power companies that previously thrived due to the AI surge are now experiencing declines as investors express frustration over the lack of significant data center deals. The anticipation for transformative partnerships has not materialized, leading to a reevaluation of growth projections within the sector. As excitement wanes, the market faces uncertainty regarding the sustainability of these companies' valuations without new developments.
This situation highlights the volatile nature of tech-driven investments, where initial hype can quickly turn into disappointment if tangible results do not follow.
What strategies might power companies adopt to regain investor confidence and stimulate growth in a rapidly evolving technological landscape?
The internet's relentless pursuit of growth has led to a user experience that is increasingly frustrating, with websites cluttered with autoplay ads and tracking scripts, customer service chatbots that fail to deliver, and social media algorithms designed to keep users engaged but devoid of meaningful content. As companies prioritize short-term gains over long-term product quality, customers are suffering the consequences. The stagnation of major companies creates opportunities for startups to challenge incumbents and provide better alternatives.
The internet's "rot economy" presents a unique opportunity for consumers to take control of their online experience by boycotting poorly performing companies and supporting innovative startups that prioritize user value over growth at any cost.
As the decentralized web continues to gain traction, will it be able to sustain a vibrant ecosystem of independent platforms that prioritize user agency and privacy over profit-driven models?
Elliot Tomaeno, an angel investor, has advised LGBTQ founders to navigate the current political landscape with caution, especially in light of the uncertainty surrounding LGBTQ rights under the Trump administration. He emphasizes the importance of avoiding political controversies unless integral to the business, suggesting that staying out of politics could mitigate risks for startups seeking funding. Tomaeno acknowledges that while some founders may find this guidance disempowering, unique and authentic messaging can resonate positively with audiences when delivered thoughtfully.
Tomaeno's advice highlights a broader tension between advocacy and business strategy, prompting LGBTQ entrepreneurs to carefully weigh their public stances against potential market repercussions.
In what ways can LGBTQ founders effectively balance their advocacy for rights with the need to secure funding in a challenging political environment?
Foundation Capital has come a long way since it was forced to scale down its fund size from $750 million in 2008 to $282 million (its sixth main fund) in 2013. On Tuesday, the 30-year-old firm announced that it raised a $600 million eleventh flagship fund, which is 20% larger than the predecessor $500 million fund it closed about three years ago. Foundation credits its revival with sticking to its knitting: seed stage investing.
The firm's ability to raise a larger fund than its predecessor in this market suggests that its early-stage strategy has been effective in identifying and backing promising startups, which could have long-term implications for the venture capital industry.
How will Foundation Capital's focus on "zero-billion" markets impact its investment thesis and portfolio composition in the years to come, and what potential risks or challenges may arise from this approach?
Global growth concerns have resurfaced in financial markets, driven by weakening U.S. economic indicators and escalating trade tensions that have dampened consumer and business confidence. While economists do not currently predict a recession, the recent downturn in consumer sentiment and U.S. manufacturing activity has led investors to adopt a more cautious stance, resulting in reduced equity exposure amid fears of slowing growth. As hedge funds shift their strategies and central banks face pressure to adjust interest rates, the outlook for the U.S. economy becomes increasingly uncertain.
The financial landscape reflects a delicate balance where investor sentiment and economic data interplay, potentially reshaping market dynamics as growth fears linger.
Will the combination of trade tensions and economic uncertainty force a fundamental shift in how investors approach risk in the markets?
Zero-day options have become increasingly popular as investors seek to capitalize on the volatility induced by Donald Trump's policy agenda and Robinhood Markets Inc.'s expansion into new product offerings. The S&P 500's record number of trading days with at least one point move of 1% or more has fueled demand for derivatives with zero days to expire, reaching a record 56% of total options volume last month. As market dynamics continue to whipsaw, investors are taking on increased risk to profit from the uncertainty.
The unprecedented nature of these rapid-fire trading sessions may be fueling a cultural shift in how traders approach risk management and position sizing.
Can regulators effectively address the systemic risks associated with 0DTE contracts before they lead to a market meltdown?
After a tumultuous week, U.S. stocks experienced a rebound as Federal Reserve Chair Jerome Powell reassured investors about the economy's stability, following a significant drop in the S&P 500. The market volatility was exacerbated by mixed economic data, including a rise in the unemployment rate despite job growth, creating an atmosphere of uncertainty among traders. This unpredictable environment has led to calls for diversification as investors seek to navigate ongoing market fluctuations.
The current state of the market highlights the delicate balance investors must maintain between optimism and caution in the face of economic indicators that can rapidly shift sentiment.
What strategies should investors adopt to effectively manage risk and capitalize on opportunities in such a volatile market landscape?
Chinese technology startups are rapidly seeking new funding opportunities to leverage the excitement surrounding artificial intelligence, particularly following President Xi Jinping's recent endorsement of private enterprises. This renewed interest in AI has led to a surge in venture capital activity, with companies in sectors from optics to robotics vying for investment amidst a backdrop of stringent regulatory challenges and geopolitical tensions. While the immediate outlook for IPOs remains uncertain, the optimism generated by DeepSeek's advancements is invigorating investor confidence in the tech sector.
The current wave of investment reflects a shift in the Chinese startup landscape, moving from imitation to innovation as companies seek to establish themselves in the competitive AI market.
Will the long-term viability of these startups hinge on overcoming regulatory hurdles and navigating the complexities of international relations?
General Catalyst has experienced a significant shift in its leadership as three prominent investors depart amid the firm's transition to an "investment and transformation company." The departures of Deep Nishar, Kyle Doherty, and Adam Valkin come alongside the firm's strategic changes, including a merger with La Famiglia and an acquisition of Venture Highway, reflecting a broader evolution in its operational model. These changes, including a shift in compensation structures favoring cash bonuses, may signal an attempt to adapt to new market dynamics and investor expectations.
The leadership changes highlight the challenges that established firms face when pivoting their business models, particularly in maintaining talent and investor confidence during periods of transition.
How will General Catalyst's transformation impact its long-term investment strategies and relationships within the venture capital ecosystem?
Jim Cramer expressed his frustration over deliberate late-day market selloffs, suggesting they are orchestrated attempts to drive stock prices down artificially. He highlighted that such maneuvers coincide with the cessation of company buybacks, implying a tactical advantage for those wanting to lower market valuations. Cramer also touched on the underperformance of major tech stocks, indicating that market dynamics are being influenced by broader trading strategies and institutional behaviors.
Cramer's analysis raises questions about the integrity of market practices and whether such selloffs could undermine investor confidence in the long term.
What measures can be taken to improve transparency in trading practices and prevent manipulative selloff strategies in the market?
Despite recent declines in Nvidia's stock attributed to supply chain concerns, Bernstein analysts assert that strong demand for the Blackwell architecture presents a compelling buying opportunity. The analysts highlight the potential for recovery and growth, suggesting that the current slump may be temporary and not reflective of the company's long-term prospects. This perspective emphasizes the importance of discerning underlying demand trends amid market volatility.
Bernstein's viewpoint reflects a broader investment strategy where market dips are viewed as opportunities rather than setbacks, potentially reshaping investor sentiment in tech stocks.
What factors should investors consider when evaluating whether to buy into a company experiencing stock price volatility?
MicroStrategy Incorporated's late selloffs have sparked Jim Cramer's concern, as he believes the market was artificially manipulated to send prices down. Cramer thinks there's no logical reason for such a deliberate attempt, making it likely that someone wanted to bring the market down. The timing of the selloffs coincides with the end of the quarter, suggesting that buyers might be trying to cover their positions.
The lack of transparency surrounding the identity of those behind the selloffs raises questions about the ethics of algorithmic trading and its impact on market volatility.
Can regulatory bodies effectively address the issue of late-hours market manipulation, or will it continue to be a challenge for investors and policymakers alike?
Vanguard has resumed its stewardship meetings with portfolio companies after reviewing new guidance from the U.S. Securities and Exchange Commission, which could require more disclosures from fund firms when pressuring companies over ESG matters. The move follows a similar step by rival BlackRock last month, as both companies take stock of materials posted by the SEC to clarify their communications. Vanguard's strategy aims to underscore the passive design of its funds and ensure that companies understand its investment focus.
This renewed emphasis on stewardship highlights the evolving role of passive investors in corporate governance, potentially leading to increased scrutiny of ESG practices among portfolio companies.
What are the implications for the broader financial industry if more active ownership strategies become more prevalent, and how might this impact the market's response to environmental and social concerns?
CFOs must establish a solid foundation before embracing AI tools, as the technology's accuracy and reliability are crucial for informed decision-making. By prioritizing the integrity of input data, problem complexity, and transparency of decision making, finance leaders can foster trust in AI and reap its benefits. Ultimately, CFOs need to strike a balance between adopting new technologies and maintaining control over critical financial processes.
The key to successfully integrating AI tools into finance teams lies in understanding the limitations of current LLMs and conversational AI models, which may not be equipped to handle complex, unpredictable situations that are prevalent in the financial sector.
How will CFOs ensure that AI-powered decision-making systems can accurately navigate grey areas between data-driven insights and human intuition, particularly when faced with uncertain or dynamic business environments?
Strategists say it’s not time to panic and pile into the recession trade just yet, as recent sell-offs present buying opportunities for investors willing to look past uncertainty. Valuation corrections paired with strong earnings make the group more compelling, particularly in tech and financials. Long-term investors can use the weakness to add to their holdings, taking advantage of the fundamental demand picture.
The resilience of the tech sector amidst global economic uncertainty highlights the growing importance of innovation-driven industries in driving economic growth.
Can governments effectively implement policies to mitigate the impact of trade tensions on consumer spending and business investment, or will these measures prove too little, too late?
Bayer informed several brokerages of its intention to seek shareholder approval for a substantial share issue just one day prior to its formal announcement, which caused a notable decline in its stock price. The proposed increase of approximately 35% in shares outstanding is aimed at covering potential U.S. litigation costs, leading to a drop of up to 10% in share value following the news. Analysts expressed surprise at the market reaction, suggesting that the cash call could have been interpreted positively as a step towards resolving ongoing legal challenges.
This incident highlights the delicate balance companies must maintain in managing investor communications and the potential repercussions of perceived information asymmetry.
What strategies should companies implement to ensure transparency while protecting sensitive information before official announcements?
Homebuyers in the US canceled purchase contracts at a record pace in January, with about 14.3% of sales agreements falling through, up from 13.4% a year earlier and the highest level for the month in data going back to 2017. The high rate of cancellations casts a pall over prospects for the key spring sales season, which is just getting underway, as house hunters face an ever-growing list of pressures, including high mortgage rates and prices. Economic and political uncertainty, such as tariffs, layoffs, and federal policy changes, are among the factors contributing to an air of instability.
The surge in homebuyer cancellations may signal a broader shift in consumer behavior, with potential implications for the US housing market and the overall economy.
How will policymakers address the root causes of economic uncertainty, which appear to be affecting not just homebuyers but also broader segments of the population?