Investment Expert Predicts Promising Venture Capital Vintage and Major Technological Breakthroughs

Why It Matters:

Yusko's insights shed light on the cyclical nature of investment and technology development, indicating that the current downturn in funding presents an opportunity for investors to obtain significant returns. Additionally, his identification of a 14-year cycle in major technological advancements provides valuable context for understanding the trajectory of digital innovation.

The Details:

• Yusko highlights that previous cycles of liquidity resulted in excessive funding, leading to inflated valuations and unfavorable outcomes.

• However, market corrections typically follow these phases, resulting in fewer deals and less competition for investment opportunities.

• According to Yusko, those who are willing to invest during economic downturns are well-positioned for substantial returns.

• Yusko identifies a 14-year cycle in technological breakthroughs, with major advancements occurring in 1954 (mainframe), 1968 (microchip), 1982 (personal computer), 1996 (Internet), 2010 (mobile net), and 2024 (next year's breakthrough).

• He predicts that the next breakthrough will involve the "truth net" or blockchain technology, which has been undervalued due to recent negative news.

• Morgan Creek's Digital Innovation group is raising funds for its fourth fund, with a focus on blockchain, artificial intelligence, computing infrastructure, and big data.

• The company aims to raise $200-300 million by mid-next year, with investments expected in approximately 30 seed-stage companies.

Conclusion:

Despite the challenging fundraising environment, Yusko remains optimistic about the future of innovation and investment. He emphasizes the resilience of human creativity and the ongoing demand for technological advancements. Morgan Creek Capital is well-positioned to support the next phase of technology and deliver infrastructure and funding to drive innovation forward.