Market first approach to deep tech investing with James Wang from Creative Ventures

In this episode, James Wang, General Partner at Creative Ventures, talks about his journey from working in hedge funds to investing in startups, the importance of finding a career that aligns with one's values and passions, and explores the differences between deep tech and software startups, addressing concerns about automation taking away jobs and discusses the impact of technology on climate change and much more! Timestamps Startups and Hedge Funds [00:00:02] James talks about his experience working in hedge funds and how it exposed him to different people and ideas. He also explains how hedge funds are like a math puzzle and how they help in understanding the interactions of the global economy. Revolution in Technology [00:02:35] James discusses the fundamental shift in the technology landscape that happened around 2015, where technology was able to have capabilities matching or beyond what humans can do. He mentions that this was an exciting time for AI, synthetic biology, and other areas. Challenges in Nonprofits [00:04:12] James talks about his background in nonprofits and social impact and why he eventually left that space. He explains that he left because he thought nonprofits wouldn't be able to make as large of an impact as he wanted, and that the ways nonprofits work are pretty non-sustainable and hard to measure. Nonprofit space optimization [00:05:03] Discussion on the challenges of measuring impact in the nonprofit space and the importance of scale in venture capital. Women's health tech startup [00:07:35] The founding of a women's health tech startup, Liners, and the potential for integrating cheaper sensor technologies and AI to bring more insights to the field. Evaluation of deep tech companies [00:09:42] The differences in evaluating deep tech companies versus software companies and the potential for new technologies, such as AI and cheaper sensors, to create new capabilities and provide better care. Deep Tech vs Software Startups [00:10:10] The speaker explains the difference between deep tech and software startups, particularly in terms of the importance of having a specific target market and the difficulty of pivoting in deep tech. Importance of Traction in Deep Tech [00:13:46] The speaker emphasizes the importance of having traction in deep tech, particularly in finding a target market that is desperate for a solution and willing to pay upfront. Labor Automation [00:14:35] The speaker gives an example of a specific industry, labor automation, that is in crisis and desperate for a solution, making it an ideal target market for deep tech companies. Automation and job shortage [00:15:43] Discussion on the implications of automation and AI on job opportunities and shortages, with examples from the restaurant industry. Automation and higher-paying jobs [00:17:08] Automation can actually create better and higher-paying jobs for workers, as it increases productivity and expands margins for businesses. Automation and knowledge workers [00:18:49] Automation is easier to implement for knowledge workers, but it is still a tool that can supplement and change the nature of their work, rather than replace them entirely.Aging populations and labor shortage [00:20:42-00:22:13] * Discussion on the aging population and labor shortage in different countries, including developing countries, and the impact on manual labor and healthcare costs.Retirement age and healthcare costs [00:23:11-00:24:18] * The possibility of people working longer and changing retirement ages to keep the system solvent, but the fundamental imbalance in terms of labor productivity and healthcare costs remains.Opportunities and challenges in climate change... This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit partnergrow.substack.com