To be, or not to be (non-consensus)

I'm going to be posting snippets from earlier robotics podcasts we've joined. Starting with episode 40 with Jay Kapoor of VSC Ventures.

Jay asked us how we thought about the tension between the best companies being non-consensus, robotics and hardware being non-consensus for most venture funds, and the realities of capex challenges making this sector legitimately hard!

Our response: AlleyCorp and Kevin have done well making non-consensus bets, robotics and smart hardware is just the latest and not the last sector we'll go deep in ahead of others!

Full response follows, jump into the podcast if this is the kind of thing you're interested in!

https://www.youtube.com/watch?v=15WblyQsR88

My perspective is informed by the innovative approach of Kevin Ryan and AlleyCorp. As an early-stage investor focusing on pre-seed and seed stages, AlleyCorp plays a critical role in supporting first-time founders and incubating companies. They specialize in building ventures from the ground up, placing long-term bets on future trends and market conditions. Kevin, in particular, has excelled in this area, skillfully navigating the complexities of early investments and leveraging emerging trends to the benefit of his companies.

One of the key trends that caught his attention is the demographic shifts and labor shortages we're witnessing globally. This issue, which predates the COVID-19 pandemic, has only intensified, presenting a challenge that all businesses must confront. The rising cost of labor, while posing its own set of challenges, also offers opportunities. Higher wages can lead to a better quality of life for workers and create openings for automation technologies to take over mundane tasks, allowing humans to focus on more complex and higher-paid roles.

Moreover, we're observing significant technological advancements that are reshaping the landscape. The cost of hardware, essential for building robotics and automation solutions, has drastically decreased. This reduction in costs, coupled with improved software capabilities, including AI and computer vision, is enabling companies to do more with less. These developments are not just about efficiency; they're about reimagining what's possible in the realm of robotics and automation.

Looking ahead, it's hard to envision a future without a substantial increase in robotics and automation. These technologies are not just about economic efficiency; they are crucial for addressing some of the most pressing global challenges, such as climate change and food security.

I'm particularly inspired by AlleyCorp's visionary approach. Their willingness to make long-term bets, as evidenced by their success with companies like MongoDB, demonstrates their deep understanding of market dynamics and their ability to anticipate significant shifts. Just as they foresaw the evolution of databases to meet the demands of growing internet and Web 2.0 companies, they are now predicting a similar trajectory for robotics and automation. This forward-thinking mindset is not only commendable but essential for fostering innovation and driving progress in our increasingly complex world.