The Spotlight by Founders Capital - Edition 6

Welcome back to Founders Capital Spotlight - your curated biweekly roundup of the sharpest ideas, analysis, and must-listen podcasts shaping venture and private markets.

Author

Sam Scott
May 14, 2025

What We’re Reading

Who are the visionaries shaping the next generation of tech giants? Business Insider's latest "Seed 100" list spotlights the top early-stage investors who are shaping the future of venture capital. Notable names include Kevin Mahaffey, Naval Ravikant, Gaurav Jain, and Sam Altman, each with significant contributions and a portfolio of unicorns and decacorns.

The UK’s pension giants are being nudged toward venture. Under the Mansion House reforms, up to £50bn could flow into private markets by 2030 - half of it aimed at UK-based assets. It’s a bold attempt to revive domestic startup funding and compete with US capital markets. If voluntary commitments fall short, the government may step in with mandates.

Why does Europe still struggle to build a unified capital market, and what’s finally being done to fix it? From startup brain drain to fragmented regulations, this is a sharp look at why the EU lags behind the U.S. in scaling innovation, and why that might be about to change.

Must-Listen Podcasts

This episode dives into a surprisingly overlooked question: do you really know your ideal customer profile (ICP)? What makes a great ICP? The a16z team unpacks how fuzzy targeting can stall growth across sales, marketing, and product - and how to redefine your ICP as you scale.

A thought-provoking discussion on the current state of private markets, whether you’re a VC or a founder. It explores why IRR is one of the hardest metrics to control, why fund returners are no longer enough, and how geopolitical risk is reshaping investment strategy.

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 discussed OpenAI’s decision to retain nonprofit board control, and, as always, shared our insights and perspective.

Research & Resources

Venture capital in Q1 2025 is split down the middle. AI and machine learning startups took in over 71% of all VC capital, making it the dominant force in the market. That’s helped push overall deal values up - but it’s hiding deeper cracks. Over a quarter of all deals were down or flat rounds, the highest share in more than ten years.

Elsewhere, the picture isn’t so rosy. Tariff uncertainty has delayed the expected IPO recovery to 2026, meaning less money flowing back to investors. That’s putting pressure on late-stage startups, who are waiting longer between rounds, and forcing some to raise money at lower valuations. Even though returns (IRR) have finally turned positive, actual cash payouts are still rare, and that’s making fundraising harder across much of the market.

Download the full report here.

Is venture capital becoming too reliant on AI?

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Last week we asked you: Where are you seeing real impact from tools like Claude/Copilot?

The most popular response was: “(C) Surface-level use: we experiment, but don't trust it in prod”

Beyond the Boardroom

In this honest reflection, Lars Schmidt unpacks the hidden emotional weight that comes with being seen as a “thought leader.” It’s not a humblebrag - it’s a reflection on burnout, identity, and the pressure to always have something profound to say. If you’ve ever felt torn between authenticity and performance, or struggled with the performative side of leadership, this one hits home.

This sharp, idea-rich piece compiles standout quotes from Peter Thiel’s interview with Peter Robinson on Uncommon Knowledge. Thiel challenges many assumptions behind modern society - from our blind faith in progress to the rejection of rational thinking. He explores why Enlightenment ideals may have downplayed violence, how we’ve replaced external action with internal self-soothing, and why today’s obsession with AI reflects a loss of intellectual agency. A provocative read that rewards close attention.

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

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