4 ms·
"But over the last couple of years, there's been an increase in individuals investing not just at the earliest stages of companies, but at the Series A and beyo
by rfrey 6y ago
"But over the last couple of years, there's been an increase in individuals investing not just at the earliest stages of companies, but at the Series A and beyond.
These individuals aren't just investing their own capital. They’re raising dedicated funds and special purpose vehicles (SPVs) from traditional limited partners (LPs)."
I don't mean to snark, but isn't this just individuals starting new venture capital firms? Maybe it's newsworthy if new VC funds are being raised by former tech founders rather than people with finance backgrounds, but it's a different story.
- nogabebop23 6y agoI think the real change is a decline in the prestige of the VC firm, which is often used as a signalling factor, combined with a rise in the profile of the individual. It's still a pretty typical VC fund model, with a celebrity face out front. I find it pretty interesting and a little funny that there appears to be real value in differentiating where the money comes from, essentially: "We fund companies with only the purest, artisanal funds, raised without antibiotics or preservatives before they are lovingly invested in your firm".
- scottlocklin 6y agoI think you nailed it. Most name brand VC firms reputations are based on a couple of good decisions early in their careers. The time scales we're talking about scream hindsight bias, and even in the best case where they made good decisions rather than got lucky, whatever cargo cult training baloney they come up with doesn't mean they will continue to make good decisions as they pass the torch to whatever MBA dipshits they dig up as successors.