Episode Description

I’m joined by Ash Arora, a Partner at LocalGlobe leading their Web3 practice, to discuss the intricacies of venture capital, blockchain, AI investments, and market dynamics.

LocalGlobe, one of the leading early-stage venture capital firms in Europe, ranked #1 early stage fund in EMEA and #3 globally with highest number of unicorns in portfolio, with companies like SoRare, Copper, Robinhood, Wise, Figma, Twitter and LP in a16z, Sequoia etc. Ash shares insights into what sets LocalGlobe apart in the competitive VC landscape, including their comprehensive 52-parameter framework for evaluating investment opportunities and the unique support structure they offer to startups.

Ash takes us through the specifics of their blockchain investments, highlighting significant successes such as Sorare, Copper, and Improbable. She explains the importance of due diligence, the unique value-add LocalGlobe provides post-investment, and their strategic approach to both pre-seed and growth-stage funding.

The conversation also explores the current market conditions, comparing them to past tech cycles and discussing the resilience of early-stage investments amidst broader market slowdowns. Ash provides her perspective on the impact of tech layoffs and the dynamics of acquiring talent in a fluctuating market.

In a detailed discussion on AI, Ash outlines LocalGlobe's broad investment strategy, covering everything from semiconductors to AI applications. She shares thoughts on the future of AI in the venture capital landscape, emphasizing the irreplaceable human touch in evaluating and supporting founders.

Ash's expertise in blockchain is evident as she discusses the state of the market, the potential of DeFi, and the future of blockchain technology. She also touches on the regulatory environment and the importance of innovation-friendly policies.

Below is a quick synopsis of all the topics we cover:

  • Venture Capital Dynamics: How LocalGlobe maintains its edge with a unique evaluation framework and extensive founder support.
  • Blockchain Investments: Key insights into successful blockchain investments and the future potential of blockchain technology.
  • Market Conditions and Talent Acquisition: Analysis of current market trends and the impact on talent acquisition in tech.
  • AI Investments: LocalGlobe's strategic approach to AI investments, from foundational models to application layers.
  • Regulatory Environment: The role of regulation in fostering or stifling innovation in blockchain and AI.

Join us for a comprehensive discussion as we explore the intersection of venture capital, blockchain, AI, and market trends with one of the industry's leading experts.

Follow me, (@iwaheedo), for more updates on tech, civilizational growth, progress studies, and emerging markets.

Here are the timestamps for the episode. On some podcast players, you should be able to click the timestamp for the episode.

(00:00) - Intro

(02:39) - Ash Arora's background and role at LocalGlobe

(04:40) - LocalGlobe's unique investment criteria and framework

(10:23) - Supporting startups post-investment

(13:11) - Investment stages and focus areas

(15:24) - Current market conditions and tech layoffs

(23:12) - AI investment strategy and market mapping

(28:08) - The future of AI and its impact on VC

(34:07) - Blockchain market analysis and investment thesis

(38:29) - Layer 2 solutions and blockchain infrastructure

(46:25) - Meme coins and market dynamics

(48:46) - Regulation in blockchain and AI

(50:06) - Intersection of AI and blockchain

(51:45) - Outro

Full Disclaimer: 

The views, opinions, and thoughts expressed by the guest in this communication are solely their own and do not necessarily reflect those of the hosting entity or its affiliates. The content provided is for informational purposes only and should not be construed as financial advice. The hosting entity and its affiliates do not endorse, recommend, or assume any responsibility for any investment decisions made based on the information provided. Always seek the advice of a qualified financial advisor before making any financial decisions.

Show notes:

A few Parameters of the 52 - Parameters:

• Should not be 100% remote

• Min 30% GPs + Partners female

• > 90% team retention rate for last 5 years

• Portfolio founder NPS

• Non-portfolio founder NPS

• Previous fund unicorn founders are LPs in the latest fund • Constructive feedback loops

                                            Figure -1 [ 52 - Parameter Framework ]

You can access the full spreadsheet here - https://docs.google.com/spreadsheets/d/1xXqxsEgtwPCpYjngjrN-EpfKiahS14pJr5woLD0yq60/edit?usp=sharing

Mental Framework:

FPBM = Founder, Product, Business Model, Market