“VC Insights with Notable Capital’s Hans Tung: Assessing the Current Climate and Uncovering the Opportunities of Down Rounds”

Notable Capital’s Hans Tung on the state of VC and the upside to down roundsTo some investors, “down round” is a dirty phrase, but not to Notable Capital’s Hans Tung. Hans is a managing partner at Notable Capital, formerly GGV Capital, a venture firm focusing on investments in the U.S., Latin America, Israel, and Europe. Hans, whose portfolio includes the likes of Airbnb, StockX and Slack, sat down with TechCrunch’s Equity podcast to discuss the overall state of venture and why he still believes down rounds can make a lot of sense. Of course, we dug into recent changes at his own firm, which evolved from 24-year-old cross-border firm GGV Capital and rebranded its U.S. and Asia operations to Notable Capital and Granite Asia, respectively. GGV’s transformation is the latest in a string of changes we’ve seen in the world of venture capital, including personnel changes at Founders Fund, Benchmark and Thrive Capital.

The venture capital world is often focused on the constant chase for growth and success, but according to Notable Capital’s managing partner Hans Tung, there is still value in the often stigmatized “down round”. While some investors may shy away from this term, Tung sees potential and opportunity within these types of investments. As the managing partner of Notable Capital (previously known as GGV Capital), a venture firm with a global reach, Tung has witnessed the ups and downs of the industry, and shares his perspectives and insights on the state of venture capital.

“An IPO is actually just a milestone, not the end game,” Tung explains in an interview with TechCrunch’s Equity podcast. “An IPO is the beginning of public investors being along for the ride. So when you think in longer-term valuations, up or down temporarily doesn’t matter as much as generating a big outcome at the end.”

This viewpoint is supported by PitchBook data, which shows that by September 2023, around 11% of the year’s VC deals were down rounds. Tung believes that the bigger picture and long-term goals should be the focus, rather than temporary market fluctuations or short-term valuations.

Aside from his views on down rounds, Tung also shares his optimism for the fintech sector and explains the specific areas within fintech that have him excited for the future. He also delves into recent changes at his own firm, which went through a transformation and rebranding to Notable Capital and Granite Asia. This transformation is just one example of the continuously evolving landscape of venture capital, with other notable firms like Founders Fund, Benchmark, and Thrive Capital experiencing significant personnel changes.

For more insights on these topics and more, tune in to Equity’s flagship podcast every Monday, Wednesday, and Friday. You can also stay updated by subscribing to us on popular podcast platforms like Apple Podcasts, Overcast, and Spotify. Don’t forget to follow Equity on social media channels like X and Threads, and Twitter handle @EquityPod. And for those who prefer reading over listening, the full transcript of this interview can be found on our archive at Simplecast.

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Max Chen

Max Chen is an AI expert and journalist with a focus on the ethical and societal implications of emerging technologies. He has a background in computer science and is known for his clear and concise writing on complex technical topics. He has also written extensively on the potential risks and benefits of AI, and is a frequent speaker on the subject at industry conferences and events.

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