VCs and startup founders rarely pay attention to slow-moving but powerful macro global events, especially with so many fast-moving things to focus on at the micro level, like technology, teams and trends.
While VCs and startup founders often are the earliest to know about cutting-edge technological advances bubbling from the bottom up (while public-market hedge fund and global macro investors find out about them only later), they often are the last to know about global macro forces that may impact them.
From Tech Crunch. Story by Josh Wolfe.
When the financial crisis hit a decade ago, hedge fund managers with strong reputations as stock-pickers suffered big losses. So they raced to show off their global “macro” bona fides and that they grokked and were protected from the mega forces that might slam their portfolios in the future.
As a VC firm spending time with many global macro investor friends, we get to learn about risk and opportunity in unappreciated macro developments. When you are trying to pick the best founding team or technology breakthrough or startup, ignorance of the macro is no virtue. Think of it like this: skillfully selecting the very best dish on a menu, after choosing amongst Click here to read entire article