We spoke to Chris Sacca, a man who has invested in many famous companies such as Uber and Twitter. Sacca a former Google employee manages venture capital firm Lowercase Capital which is involved in many web, mobile and wireless technology startups. Lowercase Capital was one of the first to invest in photo sharing network Instangram.
1) Why are many investors just ‘throwing’ their money at entrepreneurs and does an excess money discourage entrepreneurs from creating a lean and hungry and ultimately successful company?
I disagree with your question. Most investors are not throwing money at entrepreneurs. Yes, there are some companies being funded that, in my opinion, don’t have much hope of success. But, I am not always right.
2) Is there a bubble in Silicon Valley which will eventually burst?
I think it will be hard for some overvalued late-stage companies to go public. But the innovation is persisting at a faster pace than ever before and all of the macros factors like mobile penetration work in favor of tech companies.
3) As you are a investor in many successful companies how do you advise others on the key factors in avoiding bad deals?
Looking back at my successes and failures it’s clear that it all comes down to the team. The most determined and relentless founders almost always end up on top.
4) Are start ups in Silicon Valley becoming successful by luck rather than judgment causing some to believe it’s just a race to market the same idea as others, after all not everyone can get a slice of one pie?
Not at all. I don’t know of any companies that have risen to the top based on luck. Across the board, the winning companies are led by sharp, savvy, competitive, and obsessively hard-working entrepreneurs.
We would like to thank Chris for his time to answer our questions.