The Final Farewell: Saying Goodbye to The Exchange
In the ever-spinning carousel of technology news and innovation, it’s not uncommon for cherished columns and newsletters to hit their last rotation. Today, we bid a solemn adieu to TechCrunch+’s “The Exchange,” a beacon of insight that has illuminated the tech investing landscape since its inception in late 2019.
The Exchange represented more than just articles and newsletters; it was the narrative of an era, chronicling the electrifying startup boom of the 2020s and the subsequent venture capital chill that followed. Alex Wilhelm, the maestro of the column, together with the superlative Anna Heim, guided us through the complexities of tech financing with acumen and wit.
The Exchange was a cornerstone project, quintessential in driving subscribers to TechCrunch’s paid content. However, as the entity that closely tied to TechCrunch+ sunsets this month, it stands to reason that both TC+ and The Exchange take their final bow together.
As a tech enthusiast and investor, I can’t help but reflect on the impact The Exchange had—there’s a sense of nostalgia that comes with its closure, akin to saying goodbye to a guru who has been a guiding light throughout a period of seismic changes in our industry.
The Continuation Funds Conundrum
Now, let’s pivot to a fascinating topic that deserves to be unpacked further: continuation funds. If you’re not familiar with this term, think of it as a financial DeLorean, a vehicle that transports existing assets into a new timeline, to stretch their potential and possibly, their profitability.
Here’s the deal: continuation funds are a bit like a backstage pass for old investments to strut their stuff on a new stage, under a new spotlight. They allow general partners (GPs) of venture capital (VC) firms to essentially ‘hit refresh’ and rest the clock on certain assets by transitioning them into a fresh fund—a fund they manage as well. This could be a boon for limited partners (LPs), those financial backers with vested interests, as it offers them a chance to stay the course with their investment or gracefully exit stage left.
This concept isn’t really new in the private equity world, but it’s a novel act on the venture capital theater. It’s become particularly enticing as portfolios are brimming with value yet lacking immediate exit strategies. With traditional liquidity events becoming as scarce as a polite online comments section, GPs are dipping their toes into the waters of creativity to generate that elusive liquidity.
Roger Ehrenberg’s thoughts, shared on the 20VC podcast, resonate with the industry’s current feeling. Continuation funds are not just the territory of venture titans but a possible route for many in the VC sphere. They’re a response to the present-day need for more patient capital, more time for companies to mature and, hopefully, more opportunity for investment theses to reach their full potential.
Memories of The Exchange: A Retrospective
Strolling down memory lane, The Exchange has been a goldmine of content, offering more than just numbers and projections—it provided context, insight, and, at times, a touch of hilarity to the serious business of tech finance. From delving into the $100 million ARR club to dissecting the economic upheavals of the early 2020s, The Exchange was a fixture for those of us trying to make sense of the technological zeitgeist.
Before Anna took the reins of the newsletter in early 2022 and Alex ascended to the editor-in-chief throne at TechCrunch+, the two crafted an engaging and informative duo. Their combined efforts resulted in a trustworthy source that was both informative and intimate—an email you read like it’s from a friend who just happens to be a tech savant.
What Lies Ahead: The Unwritten Chapter
While The Exchange may be concluding its narrative, the story of technology and investment continues. TechCrunch, the larger body that housed The Exchange, will keep analyzing and interpreting the tech world for us. As for me, I’m particularly excited about some of the topics Alex and Anna are preparing to dive into.
AI’s integration at the operating system level, unicorn health, new focuses of debt financing, the burgeoning AI hubs blossoming outside the Bay Area, and the implications of GP stakes investing are just a few stories on the horizon. These are the narratives that will shape our industry, spark our imagination, and inform our investments in the years to come.
The Exchange may be signing off, but its legacy and the lessons it imparted will undoubtedly continue to influence how we talk about and engage with the tech industry. And with that, we turn the page, ready to embrace the opportunities and challenges of an industry in constant flux, forever grateful for the insights of The Exchange, and always looking toward the future with an eager and discerning eye.
Acknowledgments and Gratitude
On this final note, I’d like to extend my heartfelt gratitude not only to the authors and contributors to The Exchange but also to you, the readers and the community, who have made tech journalism a vibrant and evolving field. Your engagement and curiosity have fueled the thorough and thought-provoking content that has become a staple for many in this industry.
The end of The Exchange is just that—a terminus of one voyage. Yet, journeys are about the change of scenes and ideas, not the conclusion. Onward and upward, indeed