Some people see a dark cloud around the term ‘down round’, but for certain visionary investors, this might just be the silver lining. Insights from Hans Tung, a managing partner at Notable Capital, suggests otherwise and give us a fresh narrative on this usually dreaded phrase.
1. Embracing the Unpopular ‘Down Round’
Down rounds, typically avoided like the plague in the investment world, are in fact creating waves of interest among venture capitalists like Hans Tung. Having been involved with heavyweights Airbnb, StockX and Slack, Tung is no stranger to taking risks, even if it means tipping the scale of conventional wisdom.
2. Unique Perspective on Global Investments
Operating in North America, Latin America, Europe and Israel, Notable Capital has its fingers in many international pies. The diversity in geographical location opens up numerous possibilities, allowing the firm to venture into uncommon and potentially rewarding terrains.
3. A Vast Portfolio Reflecting Daring Strategy
A brief glance at Tung’s portfolio reveals companies that have altered the direction of entire industries. The presence of game-changers like Airbnb, a revolutionizer in the hospitality sector, and Slack, a pioneer in business communication, is a testament to Tung’s eagle-eyed investment approaches.
4. Redefining ‘Failure’ in the Investment World
The fear of failure and, by extension, down rounds, has pushed many investors towards safer territories. But Tung challenges this established mindset by seeking opportunities that have the potential to flip ‘failure’ on its head and turn into long-term success stories.
5. Understanding the Bigger Picture
Tung’s investment strategy underscores the importance of looking beyond immediate setbacks. Just like how no individual should be defined by their worst day, no investment should be written off the moment it hits a rough patch.
Final Thoughts: Embracing the Downside for Future Upside
Down rounds might not be everyone’s cup of tea, but for Hans Tung and his team at Notable Capital, they’re an integral part of their investment strategy. By replacing fear with curiosity, they manage to find potential in the unlikeliest of places, rewriting the rulebook on conventional investing. Their strategy? Daring leaps of faith, coupled with calculated risks, and a sprinkle of foresight.
Credit: BBC. TechCrunch, Reuters
