The Spotlight by Founders Capital - Edition 5

What We’re Reading

A VC founder says times of 'chaos' can be prime for starting the best companies - Business Insider (Alice Tecotzky)

In this sharp read from Business Insider, CIV founder Abhijoy Mitra makes a compelling case for launching during downturns. He points to companies like Microsoft and Airbnb, both born in recessions, to argue that economic volatility forces clarity, creativity, and grit. If you’re building now or thinking about it, this piece is a timely reminder that uncertainty often clears the way for real innovation.

Why The Venture Capital Secondary Market is So Hot Right Now - Bloomberg (Yazhou Sun)

If you want to understand one of the biggest shifts in venture right now, this piece is worth your time. With $122B expected to trade hands in the VC secondary market this year (up from just $25B in 2012), it's clear that liquidity is the name of the game. The article breaks down how longer startup timelines and the appeal of staying private are reshaping the traditional VC model, and why secondaries are stepping in to fill the gap. It also flags the risks, from murky company data to tricky pricing negotiations. A smart overview of a market shift we can’t stop talking about at Founders Capital.

VCs are pouring billions into defense tech under Trump - but some worry the hype is outpacing reality - Business Insider (Julia Hornstein)

As we flagged earlier this year, defence tech is firmly back on the radar, and the numbers prove it. This piece dives into the $31B wave of venture funding flooding into the sector in 2024, spotlighting megadeals like Saronic Technologies and Shield AI. It’s not just about geopolitics - the Trump administration’s push to modernise defence and simplify procurement is shifting the landscape fast. But not everyone’s convinced: some investors are already warning of frothy valuations and short-term thinking. Worth a read if you're tracking the sector.

Must-Listen Podcasts

Lucas London, CEO and Founder of Lick  - Success Is In The Mind

Lucas London didn’t just want to sell paint - he wanted to change the way people feel about decorating. As CEO and co-founder of Lick, he shares the story of building a design-led brand that turned a tired category into a vibrant community. In this episode, Lucas opens up about the early chaos of launching during lockdown, scaling a digitally native business, and the leadership lessons that shaped him along the way.

VCs are Spreadsheet Monkeys and are Commoditised - 20VC ft. Taavet Hinrikus

From being the first hire at Skype to co-founding Wise, Taavet Hinrikus has seen every stage of the startup journey. Now a Partner at Plural, he joins 20VC to deliver a no-filter critique of the venture world - calling out what’s broken, why serial entrepreneurs make better founders, and why Plural’s decision making process sets them apart.

Founders Capital Perspective

If you’re enjoying this newsletter and want to stay on the pulse, make sure to read our weekly private market trends newsletter - The Dealflow by Founders Capital. Last week we explored the growing intersection between sports stars and private markets, and, as always, shared our insights and perspective.

Research & Resources

Anthropic Economic Index: AI’s Impact on Software Development - Anthropic

Anthropic’s latest report reveals that software development is now the top use case for Claude, making up over 10% of all model interactions. Startups are the fastest adopters, accounting for a third of Claude’s coding conversations - more than double the enterprise share.

Companies like Headstart report that Claude generates up to 97% of client code and has reduced timelines from months to weeks. As usage scales, developer roles are shifting: according to Anthropic’s Chief Product Officer Mike Krieger, coders are evolving into code reviewers and product strategists, steering AI rather than starting from scratch.

It’s a glimpse into how generative AI is changing the nature of technical work itself, and which players are embracing the shift fastest.

Last week we asked you: How would you describe the current state of venture capital in 2025?

The most popular response was: “(A) Cautious optimism returning”

Beyond the Boardroom

Culture Checks - Andrew Yeung

Andrew Yeung's "Culture Checks" offers a practical framework for evaluating workplace environments. Drawing from personal experiences and insights from the tech community, Yeung outlines clear green and red flags that can help professionals assess the health of their organisational culture.

Writing to Think - Henrik Karlsson

In "Writing to Think," Henrik Karlsson explores the connection between writing and cognition. He argues that the act of writing not only clarifies our thoughts but also challenges and refines them. Karlsson's reflections serve as a reminder of the importance of deliberate writing in personal development and decision-making processes.

Like what you see? Think we missed anything? Let us know and we will check it out ahead of the next edition.