In Forbes, Judah Taub discusses the shifting landscape of venture capital and startups in the context of a deglobalizing world, influenced by geopolitical events like U.S.-China tensions and the Russian invasion of Ukraine. Judah identifies two key reverse trends: 1) The emergence of multiple winners in tech spaces based on geographical regions, exemplified by the case of Nvidia navigating U.S. export restrictions; and 2) The increasing importance of sourcing capital locally due to compliance and risk considerations, as seen in the decline of Chinese VC investments in the U.S.
These trends necessitate a rethinking of business strategies for both founders and investors. Founders will need to consider geographical and political factors when planning to sell products or expand overseas. Investors, on the other hand, will need to be more cautious about where they raise capital, focusing on "local" or "friendly" regions to mitigate future risks. The article suggests that these changes offer new opportunities for smaller players and make geographical considerations more critical than ever in the venture capital and startup ecosystems.