“I didn’t know that there is a career where I can credibly work on 60 problems. Eventually, I realized Venture Capital is the only way I can [do that].” — Tom Chi from At One Ventures
At the end of 2023, our ecosystem gathered at the Faculty Club in Berkeley, CA for Material Change Connect 2023, an event that explored the role venture capital plays in sparking meaningful change. Sponsored by Wilson Sonsini, the evening was filled with connections, vital insights and clear reminders that diversity is key to solving our generation’s biggest challenges.
After a networking happy hour, the Material Change community dove into micro and macro trends with James Huie, Partner at Wilson Sonsini. His talk highlighted key dynamics for VC partners and founders including:
- Later-stage companies are struggling with a confluence of negative factors including frozen exit markets, decreasing valuation comps, diminishing balance sheets and continued inflation. However, there is a potential slight thaw as public market valuations increase, and a few name-brand IPOs come to market.
- Many funds are focusing on portfolio companies, resulting in more insider-led rounds.
- Many companies are still going through RIFs, option re-pricing and headcount management. CEOs are increasingly adjusting business models and pursuing cash conservation strategies.
- VCs are looking for opportunities in industries related to value and supply chain changes due to a shift from globalization to localization. This is most evident in enterprise technology.
- Private companies are battening the hatches for tough raises, getting the house in order on corporate cleanup matters and expecting robust diligence.
- Many anticipate increases in M&A exits as mid to late-stage companies seek consolidation or find PE/strategic buyers.
- AI continues to be a dominant theme, attracting outsized investor attention.
Other notable speakers included Tom Chi from At One Ventures, who also serves on the Material Change Advisory Board, and Ridhi Tariyal from NextGen Jane. Tom discussed the inspiration behind At One Ventures, which is proving that investing in Climate Tech is both important and profitable. At One Ventures focuses specifically on startups introducing groundbreaking technologies designed to rejuvenate the planet’s health, particularly targeting industries in Agriculture & Food, Buildings, Construction & Manufacturing, Energy & Transportation and Ecosystem Restoration. His VC work allows him to tackle many root causes of the climate crisis and is driven by robust research, including one often-overlooked metric that he shared with our community: Climate volatility has increased three times faster than average.
Ridhi discussed fundraising for NextGen Jane, a California-based startup working to improve OB-GYN care and develop new diagnostic treatments for diseases such as endometriosis. The co-founder shared key insights into the women’s health market, including the difficulty still of finding investors who care about women’s health and are willing to invest in something that may not be profitable in the beginning. Despite this challenge, Ridhi struck a hopeful chord, stating, “You just need one person to believe in you and really advocate for it within a fund.”
We’re so thankful to all the VCs, partners, fellows, board members, instructors, sponsors and other guests from across Silicon Valley who attended Material Change Connect 2023. The event embodied everything that drives the Material Change community: authentic connections, unparalleled experience and a commitment to creating new value through the power of diversity.
We are also excited to announce that applications for our 2024 Class IV are being accepted now at https://materialchange.net/application-form/.