Trends Watch: VC Investing in Early-Stage and Growth Companies

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with David Horowitz, Founder & CEO, Touchdown Ventures. 

What is your outlook for VC investing in early stage and growth stage companies?  

The outlook for early and growth stage companies is quite positive. We are seeing a lot of innovation particularly in AI, robotics and vertical software, which are all areas where our corporate partners are investing in or where we are seeking investments. While the venture financing market is down from highs of 2021, we are still seeing high-quality companies being started and funded and that gives us optimism.

Where do you see the greatest opportunities and why?

I believe AI is one of the biggest disruptive technologies over the past 20 years. Bill Gates has described it as significant as the computer or the Internet. It has the power to automate a number of manual processes. We have been investing in AI within areas such as legal tech, health care and the built world and the ability to save time and money or, in the case of health care, identify new drug targets. It’s very compelling.

What are the greatest challenges you face and why?

Right now, I would say the greatest challenge is the economic environment. It is a bit of a tale of two cities. On one hand we have several portfolio companies who are having challenges raising outside capital. We have advised our companies to extend their runway to live another day. On the other hand, it is a great time to have capital to deploy in new investments as we are seeing valuations come down and more interest on startups to work with corporate investors, which fits well into our model.

What keeps you up at night?

Lots of things. I care immensely about all of our key constituents -- our corporate partners, our startup portfolio, our VC relationships and above all our team. Sometimes it is hard to make everyone happy but you live each day trying to make an impact to all these constituents. Impact -- you can look it up in the dictionary; it means to have a meaningful effect on someone or something. That is what we really try to do day in and day out: to drive impact to those constituents. It is not easy.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.