In conjunction with our Q1 Venture Financing Report, Zack Schildhorn from Lux Capital discusses his take on the state of venture capital investing.

A few highlights

On the current market: “It’s an ebullient time with plenty of cash in the ecosystem, rising valuations and – importantly – a huge wave of liquidity.”

On the future: “It feels like a gold rush mentality amongst investors right now, who are willing to fund pretty much anything that moves. What matters is how long that lasts, and it certainly can’t last forever.”

On Lux’s strategy: “Our preference is to invest in areas where we can maintain some price discipline. This means pursuing ideas that may be unpopular or outside others’ domains or, in some cases, ideating and funding companies at inception.”

On the proliferation of venture capital: “It’s not just a great time to be an entrepreneur, but a great time to be a new GP, in that you’re seeing thousands of new firms get started with individual partners from larger organizations branching off on their own or angel investors starting to institutionalize.”

Read full commentary from Zack Schildhorn

Posted by Cooley