Are We Investing in Things That Really Matter?

Founders are pondering: How will I survive? What businesses are truly important? What will thrive in the new normal? They also have to figure out how to build more capital efficient, profitable, and resilient companies in a much more challenging fundraising environment. Many companies will emerge stronger and in a better position to succeed.

Covid-19 also has forced us all to realize we’re all human and in this together. Even though our systems have failed us, individuals are stepping up in a big way. Many of them are tech entrepreneurs. Bill Gates is single-handedly funding vaccine manufacturing. Jack Ma was one of the first to ship PPE in bulk to the U.S. Jack Dorsey just committed $1B to world-positive causes. The connection between these three individuals is capital.

Covid-19 makes obvious what we’ve known all along: Money is power.

Venture capitalists will fund the next generation of multi-billion dollar companies. With that comes the ability—and, some might argue, a human obligation—to fund a better future. I’m optimistic that VCs will invest more intentionally towards building a better future.

The crisis has been a wake-up call for many venture investors, who wonder: Are we investing in things that really matter?

I often share good deals that are off-thesis for me with tier 1 seed funds, and they’re usually stoked. Now, for the first time, fellow investors are replying with, “I’m not sure the world really needs another dating app right now,” “Generating more YouTube content is not a top priority,” or “I can’t bring myself to care about shopping.”

Many of the most valuable companies of our time will solve the biggest problems impacting our wellbeing. There’s more opportunity than ever to invest in world-positive theses (e.g., climate change, wellness, healthcare, education, food, flexible work, economic opportunity, etc.). This strategy aligns with my personal mission to reallocate the world’s capital and networks towards companies making the world a happier and healthier place.

As investors, our primary responsibility is to deliver a high IRR. As humans, our responsibility is to leave the planet better than how we found it. Luckily, we’re at a moment in history when these two opportunities overlap. Even pre-coronavirus, many well-known and respected funds like Obvious Ventures, USV, and Congruent shared this sentiment.

We will emerge stronger after this crisis is over. As Marc Andreesen wrote, now is the time to build.

Now, more than ever, the case is obvious for world-positive investing.