We dive deep into our sectors. Our research drives our insights and thesis-driven approach.

We’ve all heard Marc Andreessen’s epochal prediction that “software is eating the world,” but in recent years, that phrase has come to mean so much more in the venture business. We started seeing companies consume their technological advantages, rather than selling them to the market. Companies started attacking legacy incumbents head-on, raising venture capital and leveraging many of the same tactics of high-growth software companies to steal share. It’s impossible to understate the significance of this shift as it broadens the investible scope from simply software companies and applications (which are high growth and high margin, but relatively small with respect to global GDP), to EVERYTHING. It’s also added a ripple of complexity to investing. I was recently with one of the partners of a major VC firm and he asked “are these really tech companies?” As always, the answer isn’t binary. Some of these companies are simply copycats of legacy business models with a license to burn. Others will leverage technology to create unprecedented economic advantages and consumer surplus, transforming their industries.

In 2018, I wrote a memo to crystalize my thoughts on the retail space. Even then, the retail industry was experiencing unprecedented disruption at the hands of Amazon. I titled the memo, “The Rebirth of Retail” and called for someone who could be an offline competitor to Amazon/Shopify. The hypothesis was that if someone could establish a shared offline retail platform that leveraged data to optimize the placement and utilization of brands across locations, they could have a monopolistic advantage over the rest of the retail market, experiencing lower costs, higher store utilization, better risk management and higher sales per store than any legacy retailer could on their own. In doing so, they’d have the opportunity to capture millions of stores and grab a huge chunk of a $1T prize.

At Equal Ventures, we believe that leveraging technology to solve the challenges of climate change will represent one of the most pressing and important innovation dilemmas of our lifetime. While some of these challenges will be solved by advances in power generation technologies and material sciences, tremendous efficiencies are lost due to misalignments in the value chain. Nowhere is this more obvious than in energy efficiency for commercial buildings.

In today’s market, stiff competition and heightened market valuations are raising concerns across the venture ecosystem. Many fear that consensus returns for this period could ultimately be mediocre and see a reshuffling of both the venture hierarchy and the way venture as an asset class operates. With that, figuring out an advantage over the consensus is more important than ever — it’s not just a means to returns, it’s a means to survival. Some believe that power law dynamics suggest a capital cannon approach to lay down as many bets as possible in the hopes of achieving a $100b outcome (which is now more possible than ever) that will justify many losers and, to be fair, they could be right. For better or worse, that’s not me and that’s not Equal Ventures.

Over the last 18 months, digital grocery has gone from the fringe to the forefront of consumer purchasing behaviors. Far before U.S. adoption skyrocketed to 43% in 2020 from 24% in 2018, our team set out to figure out “if digital grocery adoption became meaningful, what would happen?. We knew we’d be behind the curve to invest in a digital grocery upstart like Imperfect or Misfit given our investment stage, but felt that there had to be additional opportunities created as the value chain evolved.