Ankur Sharma

Co-founder @brysk
Driven by technology, new ideas and student of life

[Ankur Sharma @ankur018]

Really insightful article from @jamescurrier
Must read for all the founders https://t.co/zTQtjjiLBe

[Ankur Sharma @ankur018]

New insights!
Manufacturing is a war now, by @Noahpinion https://t.co/8zMe0sBT0B

[Ankur Sharma @ankur018]

Soon enough, though, a new generation of firms raised on the mother’s milk of AI will create an army of supersoldiers ready to attack bigger armies who are still fighting on horseback.
https://t.co/8KzOmymeDM

[Ankur Sharma @ankur018]

No better words were spoken: "The AI revolution will inspire a golden age of startups with lower infant mortality, as there will be fewer people (i.e., less risk) required to get to sustainability. "https://t.co/8KzOmymeDM

[fintechjunkie @fintechjunkie]

The Grand Reset: VCs and LPs Are Starting To Internalize Reality

The past few years in the VC space have been brutal. Darwin has returned from vacation and the frothy gold rush of the 2018-2021 startup ecosystem has vanished. The ZIRP environment caused valuations to soar and VCs threw money at any startup with a pulse. The money was put to work by Founders quickly, many of whom chased shiny objects and undisciplined growth because their bank accounts were flush with cash.

But a harsh reality set in once we entered a new and higher interest rate economic cycle at the beginning of 2022: The vast majority of the high-flying ZIRP era startups are unlikely to deliver great financial outcomes for their investors and employees.

Early in the correction cycle there was a lot of denial by Founders, VCs and LPs, but this denial has for the most part gone away. For many startups it’s clear that it will be challenging if not impossible to earn their way into their last valuation. For many investors it’s clear that they’re playing to recoup their money (i.e. – playing for pref) rather than playing for “fund returning outcomes”. And for many LPs, they realize that this is an industry wide phenomenon because every active fund manager played the game that was on the field.

This has birthed a phenomenon that can be thought of as "The Grand Reset" where everyone in the ecosystem is seeking the cleanest path to a “do over”.

Venture capitalists know that they have one or two funds that are going to underperform but are excited about their front book opportunities. So the “new deal” they’re making with LPs is that they’ll try to quickly recoup what they can and make the most of the back book in return for being more disciplined going forward.

LPs understand that more investments than normal will fail and they know that absorbing those losses will lead to lower fund performance. LPs realize that the VC asset class is cyclical and great vintages can be created by great managers once the ecosystem flushes out the mistakes produced in an abundant and free flowing capital environment. The “new deal” they’re making with VCs is that they’ll forgive a bad vintage if the VCs will be honest with them about what the back book is “worth”, be more disciplined going forward and they’ll do everything they can to return some cash “soon”.

And many Founders have realized that the ZIRP funding environment hurt their startups in multiple ways. First, their common equity is likely buried under a massive preference stack. Second, too much money caused them to hire too many people and invest in too many projects and undoing this has been challenging. Third, raising capital when a company has been in “shedding mode” rather than “growth mode” is difficult which puts re-booting growth at risk. And finally, the opportunity cost of trying to fix a broken business vs. starting a new one from scratch makes sticking around “expensive”.

The net result of this “Grand Reset” is that there’s no longer incentive for anyone to maintain the illusion they can shepherd mediocre companies towards billion-dollar IPOs that aren’t going to happen. Instead, the focus has shifted towards "landing the plane" for the 90% of companies that aren’t ever going to achieve escape velocity. This generally means navigating an acquihire for struggling companies and helping “good but not great” portfolio companies find exits through acquisitions or mergers even if it means selling for a fraction of their inflated peak valuations.

This shift can be brutal for Founders who envisioned a triumphant IPO. But for many, it's a wake-up call. The pressure to "grow at all costs" has receded, replaced by a need to focus on building sustainable businesses with real revenue models and clear paths to profitability.

And "The Grand Reset" isn't just about selling off inflated companies. It's about resetting expectations on all fronts. VCs are re-evaluating their investment theses, focusing on strong unit economics and caring about capital efficiency. Founders are being forced to build businesses that can turn over cards in a disciplined way and survive without the crutch of endless VC funding. And LPs are seeking to re-up with Funds that have great pre-2018 track records and have a true competitive edge in today’s new normal environment.

This new landscape has its downsides. The flow of easy money has dried up which makes it harder for promising early-stage startups to secure funding. But there are upsides as well. The emphasis on fundamentals could lead to the creation of a new generation of startups built on a foundation of sustainable growth, not just hype.

The Grand Reset represents a significant course correction for the startup ecosystem. It's a painful process, but it could ultimately lead to a healthier and more sustainable future for both VCs and startups alike. As the dust settles, one thing is clear: The era of easy money is over. The startups that emerge from this reset will be the ones that can demonstrate real value and build strong businesses for the long term.

(More on "landing the plane" in a thread next week).

[Ankur Sharma @ankur018]

@DarrelFrater We are currently raising our pre seed for autonomous checkout technology and will be interested

[Ankur Sharma @ankur018]

(Data + Model) x some UX = 🎉
to
(Data + Model) x UX x (Distribution + Perceived Value to Customers) = Your new AI MVP
Building a startup gets harder and that's the fun part :)
https://t.co/a8DhfJFtV7

@brysk_ai

#startup

[Ankur Sharma @ankur018]

@ViCustomerCare i have been incorrectly charged during international roaming. No message on the subscription plan deactivation and you guys charged incorrectly now. Also, now you have disabled my internet and impacting my mobility. This is fraud cc @GoI_MeitY @AshwiniVaishnaw

[@jason @Jason]

Most folks today do an average or below average job, but think they are actually doing an above average—and sometimes even elite—level of work.

The gap between performance and perceived performance has never been greater.

I blame this on parenting & a lack of candor at work.

[Techstars Toronto @TS_Toronto]

🚀 Exciting News! 🎉
Techstars Toronto Accelerator welcomes @brysk_ai to our 2023 Program!
Brysk revolutionizes retail with autonomous checkout technology.
Check out them 👉https://t.co/CbHpTm4M8O
#tstoronto2023 #brysk #AutonomousCheckout

[nat @nataliefenglin]

best interviewers imo

Life: @shaneparrish of Farnam Street
Work: @HarryStebbings of 20VC
Play: @seanseaevans of First We Feast

[Jason Yeh @jayyeh]

The VC slowdown is real

But 400+ brave VCs still invested over $1M in seed deals last month

If you're raising soon, maybe start with them?

To help, I made a list of 418 investors who led round over $1M

If you want it
1. Comment "Nov Leads"
2. RT + Follow so I can DM it

[Ankur Sharma @ankur018]

I just created my new @inside profile. Get yours too at https://t.co/4Lqmw9p5zX - a new social network that's anti-spam, anti-self-promotion, and anti-BS.

[delian @zebulgar]

👑

[Ankur Sharma @ankur018]

Institutional investing, done right from the beginning of the journey. Cheers First Cheque!

[Prateek Agarwal (Pre-Seed Investor @FirstCheque) @FCwalaPrateek]

30 days to close your round, 200+ strong founder community. Institutional investing at PreSeed Stage - First Cheque is back!

Know more here : https://t.co/fdIAgVBr7k

[Ankur Sharma @ankur018]

Customer Focus: https://t.co/16eR7rWbdo

[Ankur Sharma @ankur018]

I'm attending Meet Our Fund 3 on May 24 & 25. Get your free virtual ticket here: https://t.co/wyGiQ2r90z (cc: @jason @inside) #MOF3

[Steph from OpenVC @StephNass]

We've built THE list of VC lists.

23 databases. 220k+ investors. 100% free.

Please like + RT this tweet to help a founder out.

Aaaand... here we go 👇

[Ankur Sharma @ankur018]

"While you can’t snap your fingers and become more talented, you can create your own talent. Consistency creates talent."

A Tiny Thought worth reading in the @farnamstreet weekly newsletter.

https://t.co/ikqINlUZcO

[Mayank Joshi @shaitaanbaba]

Hey @ZoomCarIndia stuck in the middle of the road for the pending challans with family including kids. It’s close to one hour we are waiting for a resolution. The @HYDTP would not let us go unless half of the challan is paid. We are not getting anything from your side as well.