Theresia Gouw, Founding Partner of Acrew Capital

Market Dynamics and 2019 vs. 2020 Outlook

• Total venture capital funding in 2019 was approximately $4 billion lower than 2018, driven almost entirely by a $5 billion decline in mega-deals ($500 million+).
• In contrast, Series A funding increased by approximately $4 billion in 2019 compared to 2018, indicating strong early-stage liquidity.
• The decline in mega-deals is attributed to a public-private disconnect following high-profile failures to go public, such as WeWork.
• Teresa Gal predicts a potential resurgence in the consumer internet sector, noting that early-stage company formation is "bubbling back up" after a period of disfavor.

A Crew Capital Fund Strategy and Structure

• A Crew is structured as a multi-generational firm featuring three generations (Gen X, Y, and Z) among its five co-founders to ensure long-term stability and avoid succession friction.
• The firm exclusively focuses on Series A investments in software sectors, specifically Cybersecurity, Infrastructure, FinTech, and Consumer Internet.
• The firm has expanded its investment team to six partners to maintain agility; final investment decisions are made collectively by the entire team.
• A Crew differentiates itself by focusing on the "white space" of Series A, a stage where the number of exclusive-focused firms is lower now than in the late 1990s.

Diversity and Deal Flow Implications

• While female VC partners represent only 9% to 11% of the industry, A Crew's investment teams and network result in 40–45% of their backed founders having a female co-founder.
• The firm attributes this high diversity rate to the broader connectivity and deal referrals generated by their diverse, multi-generational partnership.
• Gal argues that diverse investment teams provide a competitive advantage by expanding the opportunity set and accessing companies that other firms may miss.

Growth Stage Risks and Management Scaling

• Late-stage funding rounds have shifted, with "growth rounds" now frequently starting at $500 million, up from historical norms of $50 million.
• Overcapitalization poses a risk by potentially diluting management focus, as raising excess capital does not guarantee faster goal achievement.
• The primary bottleneck for scaling remains executive and management talent, which cannot be acquired as quickly as capital; raising $300 million instead of $200 million does not proportionally increase success rates if the team cannot absorb the scale.

Accelerated Deal Timelines and Mitigation Strategies

• Investment decision timelines have compressed significantly, dropping from 90 days to as low as nine days in the last 15 years.
• This pace remains slower than the "nine hours" typical of the 1999 bubble but requires proactive mitigation to maintain due diligence quality.
• A Crew mitigates speed risks by:
  • Pre-identifying specific subsectors and companies before financing rounds begin.
  • Ensuring half of the companies they meet have been in conversation with the firm between fundraising cycles.
  • Organizing sub-teams of two to three partners focused on specific sectors to maintain readiness.

Specific Investment Themes and Sectors

• FinTech: The firm is investing in companies utilizing AI and machine learning platforms for real-time credit decisioning and underwriting, often opening these capabilities to third parties.
• Cybersecurity and Infrastructure: These remain core pillars led by the firm's senior partners.
• Consumer Internet: Focus is shifting toward platforms driven by Gen Y and Gen Z that prioritize experiential consumption over tangible goods.
• Blockchain: The firm views blockchain as critical infrastructure (the "picks and shovels" layer) rather than cryptocurrency speculation; they began making seed investments in this space two years ago alongside early-stage funds.