A Conversation with TechCrunch’s Equity Podcast
In a venture capital landscape where "down round" is often seen as a dirty phrase, Notable Capital’s Hans Tung presents a contrarian view. As a managing partner at Notable Capital, formerly GGV Capital, Hans has built a reputation for his investments in the U.S., Latin America, Israel, and Europe. With a portfolio that includes Airbnb, StockX, and Slack, Hans sat down with TechCrunch’s Equity podcast to discuss the state of venture capital and why he still believes down rounds can be beneficial.
The State of Venture Capital
According to PitchBook data, by September 2023, nearly 11% of the year’s VC deals were down rounds. This statistic might raise eyebrows among some investors who view down rounds as a sign of failure. However, Hans takes a longer-term perspective:
"An IPO is actually just a milestone, not the end game. An IPO is the beginning of public investors being along for the ride. So when you think in longer-term valuations, up or down temporarily doesn’t matter as much as generating a big outcome at the end."
Hans’ statement highlights the importance of focusing on long-term growth rather than short-term gains. In today’s fast-paced venture capital landscape, it’s easy to get caught up in the latest trends and metrics. However, Hans’ words serve as a reminder that true success lies in creating value over time.
Fintech: A Sector with Endless Possibilities
Hans is still bullish on fintech, an area he believes has immense potential for growth. When asked about his favorite sectors within fintech, he mentions:
"I’m particularly excited about the areas where we can use technology to make financial services more inclusive and accessible to underserved communities."
Hans’ enthusiasm for fintech is not unfounded. The sector has seen significant growth in recent years, with companies like Stripe, Square, and Robinhood leading the charge. As fintech continues to evolve, it’s likely that we’ll see even more innovative solutions emerge.
Notable Capital: A Firm on the Move
Under Hans’ leadership, Notable Capital has undergone a transformation from its predecessor, GGV Capital. The firm rebranded its U.S. and Asia operations to Notable Capital and Granite Asia, respectively. This change reflects the firm’s commitment to adapting to the ever-changing landscape of venture capital.
As part of this shift, Hans is focused on building a team that can navigate the complexities of today’s market:
"We’re looking for people who are not only great investors but also have a deep understanding of the industries and technologies we invest in."
This emphasis on team-building speaks to the importance of having the right people in place as the venture capital landscape continues to evolve.
Recent Changes in Venture Capital
The world of venture capital has seen its fair share of changes lately. Founders Fund, Benchmark, and Thrive Capital have all undergone personnel shifts, reflecting the dynamic nature of the industry.
Hans acknowledges these changes but remains optimistic about the future:
"These changes are a natural part of the evolution of any firm. What’s important is that we continue to stay focused on our core values and mission."
Conclusion
In conclusion, Hans Tung presents a refreshingly contrarian view on down rounds and the state of venture capital. As the industry continues to evolve, it’s essential to remember that true success lies in creating value over time.
Hans’ enthusiasm for fintech is contagious, and his commitment to building a team that can navigate the complexities of today’s market is admirable. As we move forward, one thing is clear: the world of venture capital will continue to change at an unprecedented pace.
About Hans Tung
Hans Tung is a managing partner at Notable Capital, formerly GGV Capital. With a portfolio that includes Airbnb, StockX, and Slack, Hans has built a reputation for his investments in the U.S., Latin America, Israel, and Europe.
About TechCrunch’s Equity Podcast
TechCrunch’s Equity podcast is the flagship show of the network, featuring in-depth conversations with industry leaders like Hans Tung. If you prefer reading over listening, check out our full archive of episodes on Simplecast.
Subscribe to Equity
To stay up-to-date with the latest episodes and interviews, subscribe to Equity on Apple Podcasts, Overcast, Spotify, or your preferred podcast platform. Follow us on X and Threads at @EquityPod for the latest news and updates.
