The Transaction Crash and an AI Moment

Happy Friday...

I am headed to New York for the first time in a while. I will be spending the week with Rachel who lives on upper east and invited me to stay at her apartment while I am in town. Should be fun. I am excited to get caught up with my New York network.

This week we had an LP update call where I chatted with some great managers we have allocated capital to discuss the outlook in venture and markets.

We ran the conference on Sequel.io (a portfolio company), an incredible product that allows anyone to host live events on their site.

One term that stood out was 'Transaction Crash' which 1 Sharpe Ventures General Partner, Gregor Watson was explaining to us (they are a property tech firm). Gregor does not see a housing crash ahead but a 'transaction crash' from the move higher in rates that will keep people in their current place.

The stock markets are seeing a transaction crash ...looking at volume the last 6 months in Robinhood and Coinbase.

By all accounts, 2023 is looking bleak for growth. That does not mean, capital raised at seed will not be deployed. I think it will and that was the general consensus. The art of this deployment is what will create alpha.

One bright spot shaping up in tech is AI. The most exciting part of the recent AI attention is it came out of nowhere while everyone was looking at crypto. It is exciting to see millions use and discuss the chat GPT and generative AI without all the promotion and marketing.

This might be an AWS type moment that will spur organic growth which is the best type of growth.