Thread by BlueCheckmark Chris Palatucci
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- Jan 12, 2023
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@SaraNayeem had a great thread on observations at #JPM23. Core to our business, even outside of JPM, is talking to people, so here are mine.
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Sara characterized #JPM23 as “upbeat.” Mine is “non-negative”. Not the enthusiasm of pre-pandemic but honestly, did you expect the curve to go up and to the right forever? Even if there hadn’t been a pandemic, the correction is due.
Nobody is saying funding is easy and IPOs are happening daily, and certainly not a ton of deals announced this week, but it’s not all doom and gloom.
We’re seeing the clearing out of all the crap. All those SPACs that should never have been done in the first place and all the me toos (how many CAR-T companies do we really need?). Still tons of private $ out there but VCs are being cautious.
Typical VC funds run 10 yrs, so if you started in VC 10 yrs ago you may never have seen anything like this but please stop panicking. This too shall pass.
The smart cos raised during the boom at crazy valuations, so they have cash and can wait to go out. Yes, it changes the cap table, but there’s not the pressure to make payroll next week.
Some bankers were “it’s the end of the world,” but my take is that the consensus is 3Q23 we’ll see the window crack open.
There’s a ground shift happening in VC. Lots of younger investors are fed up with having a tiny portion of the carry allocated for them while the GPs are getting annuities on multiple funds. Prediction: we’ll see a bunch of new LS VC funds in the next year or two.
Lots of the Europeans were MIA.
Less opulence, which is good. It’s always been a thorn in my side that half the attendees are flying to SFO in first class (not on miles) sipping champagne and staying at the St. Francis, then get up in front of the room to say, “it’s all about the patients.”
Receptions were subdued and less over-the-top. Attendance was maybe 60 – 70% of pre-pandemic levels which contributed to that of course, but still good to see things a bit more down to earth. Even the apps were less fancy.
Some places didn’t get the memo. $125/hr @ JW Marriott to sit at a table. $75 + 22% mandatory tip for a BOXED LUNCH @TrattoSF. Others more realistic. 1st time I’ve ever eaten @ the Pinecrest in 20 yrs. (don’t bother). This supports @peterkolchinsky’s mission to leave SF. Agree.
Bankers still like suit and tie. VCs are done with puffy vests. I’m done with uncomfortable shoes. I think I’m going with jeans and a sport coat next year. See you there, wherever it is! Hope y'all had a great #JPM23 and safe travels. Overall positive on 2023.
