In a panel at Street Fight Summit earlier this month moderated by Mashable editor Jason Abbruzzese, two experienced venture capitalists active in the local space shared their outlook on funding trends, common pitches they frequently hear, and the growing internationalization of startup culture.
Satish Dharmaraj, partner at Redpoint Ventures, and Howard Morgan, partner at First Round Capital, both said they get a lot of pitches from companies claiming to be the Uber of something, but by virtue of the friction in their business, most are not Uber, Dharmaraj was quick to point out. Morgan said he sees a lot of local directory plays, on which he generally passes, citing an abundance of established local directory resources. Other common pitches include local event discovery firms, food delivery apps, and online-to-offline services designed to drive foot traffic to stores. Almost everything has an on-demand angle.
Dharmaraj indicated a tightening in the venture capital market, particularly for growth-stage companies. “People are being more careful about valuations,” Morgan added, “but there’s always a market for great companies.”
Noah Elkin is Street Fight’s managing editor.