JP Morgan's head of startup banking says 'Founder Mode' won't get you a unicorn | Equity Podcast

Ashish Lakhanpal's Background

• Ashish Lakhanpal spent over 10 years working in software, including working with startups and later stage companies, mostly focused on enterprise software. (58s)

The Innovation Economy in 2023

• Invested capital in 2023 is trending toward \$180 billion with 15,000-16,000 deals, exceeding historical ranges and rivaling the top five years in the innovation economy. (6m48s)
• The current geopolitical environment is leveraging technology as a competitive advantage, leading to the need for further technological advancement. (7m48s)

Venture Capital Landscape in 2023

• In 2021 there was a high level of liquidity in the market, partially due to the once in a generation pandemic. (3m20s)
• The high levels of liquidity in 2021 led to more dollars in the hands of venture capitalists and as a result, more money for innovators. (4m19s)
• While 2023 is not as strong as the high valuations of 2021, there are some challenges with valuations and venture firms waiting to see how the market performs before investing more capital. (10m22s)

The Rise of AI-First Companies

• There is a significant amount, 30-40% of deal flow and capital infusion, going towards true AI-first companies. (12m35s)
• The substantial volume of AI companies being formed will likely lead to some failing to achieve an IPO or ideal exit, but this is a natural aspect of the innovation economy. (15m5s)

Exit Strategies Beyond IPOs

• There are multiple successful exit strategies besides IPOs, including M&A (mergers and acquisitions), with startups acquiring other startups and large corporations engaging in strategic acquisitions. (15m17s)

Traits of Successful Founders

• There are many ways for a founder to be attractive to investors, including serial entrepreneurship, being a technical or functional founder, having a team, and having expertise in a specific field. (17m49s)
• Regardless of background, the most important traits for a founder are resilience, passion for their idea, and the ability to be discerning about investors. (18m49s)

Shifting Founder Mindset

• Instead of focusing on a monolithic "founder mode," founders should focus on values such as resilience, innovation, networking, and building trust with advisors. (20m18s)

Design Thinking and Enterprise Businesses

• Design thinking is important for building great companies, and this concept extends to enterprise businesses as well. (22m22s)

Emerging Tech Hubs

• New York and the Bay Area are dominant in invested capital, potentially representing over 50% nationwide. (29m4s)
• Emerging tech hubs like Seattle, Austin, Miami, Boston, Colorado, and Salt Lake City are attracting significant investment, reaching hundreds of millions per quarter. (30m1s)
• While early-stage startups can thrive in these emerging hubs, late-stage scaling still favors regions like New York and Northern California due to access to talent, employees, and a substantial investment community. (30m39s)

Key Technological Trends

• Robotics, as a foundational element of artificial intelligence, is seeing a resurgence, particularly in areas like Pittsburgh, Pennsylvania, where institutions like Carnegie Mellon University have expertise. (24m58s)
• Fintech is experiencing growth driven by wealth transfer between generations and the demand for sophisticated online and digital services, particularly in regions like Miami and New York. (26m7s)