Introduction

Hi, I'm Danny. I’m managing editor at TechCrunch and I analyze issues of technology and global power. Get in touch at danny@techcrunch.com.

Formerly, I was a venture capitalist at Charles River Ventures and General Catalyst. I'm a Harvard PhD dropout and a graduate of Stanford in Mathematical and Computational Sciences.

Current Obsessions

The things I think about every day:

  • The Rise of China
  • Data Sovereignty and the fracturing of the internet
  • Cost Disease
  • Economic development in the 21st century
  • The challenge of megaprojects and infrastructure

Writing Review

Wow, what a Q1

Wow, what a Q1

Hello it’s Danny Crichton again. I last sent out an email to my personal newsletter list on December 30th — a lot has changed hasn’t it? This is your weekly-but-really-comes-quarterly email from me about what I have been thinking and writing about.

Hopefully you all remember signing up (it’s double opt-in to avoid spam), but if not, feel free to unsubscribe in the email footer below (I won’t be offended). As always, feel free to email me at danny.crichton@gmail.com.

So how are we doing?

Hopefully, all of you are fine. I am doing well, and very thankful to be at a workplace like TechCrunch that has been working-from-home for the better part of a decade. We are hunkered down here in Brooklyn, eating some great food thanks to Chaeha, and otherwise weathering the storm so far in good shape. Hopefully all of you are finding ways to cope, and feel free to reach out if I can ever be helpful in these troubling and dynamic times.

The Plague

So like everyone, I have mandatorily become an expert on the novel coronavirus, which really just means I relay bad thoughts from people who probably shouldn’t be speaking out loud.

TechCrunch has written more than 250 articles on coronavirus since the pandemic started, and I have personally written seven of those. Three of those were more feature pieces, including a recap of what the last 90 days have looked like in the financial markets, and two in-depth perspectives (linked below) on what it is like to fundraise now in the Valley given the situation.

Everything is changing all the time, and it’s amazing to see how fast stories just completely expire. But not all advice does, and I’d like to pull a quote from my article on how to think through the next few months and maybe even years given what we know today:

In short then, the novel coronavirus is adding huge ambiguity to the futures of a lot of startups. But ambiguity is what founders navigate, literally every single day. This issue, like every other issue that comes up in the activities of building a company, is no different. Ask for advice from other founders and advisers. Listen to the feedback people tell you. Get creative about how to connect with new folks as quarantines and lockdowns persist. Husband your capital, but realize that now might be a moment of growth rather than merely stagnation.

Do what you can with what you have. That’s all you can ever be expected to do.

Book Club!

I was a trendsetter and launched a stay-at-home book club weeks before anyone cared about stay-at-home book clubs (that’s my VC bet for the year).

We read Ted Chiang’s Exhalation, a science fiction collection of nine short stories that covered everything from climate change, to the connections between all of us, to how the future of humanity will develop. Given the pandemic situation, some of the themes of this book will particularly resonate if you read it now.

I wrote up analyses of each of the stories for TechCrunch, and had a nice dialogue with some readers about the messages inscribed in these works. This was a huge undertaking personally for me (14,000 words+ of ultimate text) but it was great to intensely read some great pieces of literature.

The changing VC landscape

I wrote a bunch in the last quarter about how the VC landscape is changing this year, even before the pandemic started. VCs are getting tired, there are just too many of them, seed capital is breaking up into multiple stages, and liquidity is getting really, really hard to find. Now with the pandemic, it will be interesting to see how these fundamentals change (my guess is actually not much, but let’s see).

I’ll pull this quote which amuses me in retrospective:

Lack of bandwidth, hyper-velocity, a pittance of sleep — all of these are intensifying the sensitivity of VC returns. Email a VC an hour before or after and it may well change the result of a fundraise. VCs once had a reputation for plodding and slow deliberation. That old normal is definitely dead right now, and in its place is a new, modern VC who is going to determine millions of dollars in a few minutes on a jet fuel of caffeine and ambition.

My how times have changed. Now VCs are tired, but not writing checks.

Equity

Since my TechCrunch colleague Kate Clark left for The Information, I have been filling in as a co-host of our venture capital podcast Equity with Alex Wilhelm. There has just been so much going on that we’ve been talking about, including the complete collapse of the IPO markets, the strange tale of a VC firm who just handed over tens of millions of dollars — for free — to a startup, and a bunch of new fundraises. If you haven’t listened recently, definitely catch up.

Here’s the last three months worth of episodes:

Photo by Marc A. Hermann / MTA New York City Transit used under Creative Commons

Discussion

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~ Danny