Thoughts

Andrew Miller

July 16, 2023

Capitalizing on the VC Reset with Premium Domains

Last week, I wrote about the overall markets and its effect on domain assets. PitchBook Data just published a story on Q2 in the venture capital market, and how a “reset remains in full force. Valuations continued their declines at the later stages, with venture growth seeing the deepest cut.” They added that new investment commitments were moving slower and a precious few companies were filing for IPOs.

The venture market shift from growth-at-all-costs to the efficient use and deployment of capital was a major change from the loose financing climate of 2021, and it’s likely creating a more sustainable environment.” Lastly, it added that the good news is” the pressures piled onto the market are letting up.”

Theorizing how this affects ultra-premium domain names assets is what I do. As I have said prior, with over 25 years and hundreds of millions of dollars of domain acquisitions and sales as a principal, founder, and advisor, cycles are normal, healthy, and happen.

It is in these slower periods that there is opportunity. If a VC-backed company is spending carefully, they may slow track or lower their willingness to spend on the acquisition of a brandable, exact match dot-com domain. Buying your exact match, category domain is likely the single most strategic and savvy investment you can make.

The domain will add exponential value across all facets of your business and becomes a balance sheet asset—one that not only is game-changing for your company, but also achieves positive asset appreciation. It is not a P&L expense in tight times. This is the time to use your capital to increase the marketability of your company and its enterprise value. Here are some CEO/Founder case studies driving this home.

All articles