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Now that the knowledge of how to start a high growth startup has become so well distributed it's amazing how few seed deals Silicon Valley firms actually do. Ev
by staunch 12y ago
Now that the knowledge of how to start a high growth startup has become so well distributed it's amazing how few seed deals Silicon Valley firms actually do. Even YC only invests in dozens of companies per year.
Only a tiny fraction of would-be founders actually attempt to jump through the hoops to raise money. Only a fraction of those succeed. And yet just about any team of hungry and determined tech workers has a chance at creating something of immense value in the world. Advances in technology have created many more opportunities than we can deal with.
A single VC firm could fund 10,000 teams at $100k/each reasonably easily. Based on something as simple as LinkedIn profiles maybe.
- mattmanser 12y agoA single VC firm could drop 10 billion dollars? I think you've put a few too many zeros...
- tatterdemalion 12y agoIt's actually only 1 billion, not that that or "managing 10,000 investments at once" is actually reasonable.
- TimPC 12y agoThink the series A crunch is bad now, imagine if a fund did this clearing out its entire capital with no ability to follow-on...
- staunch 12y agoThe "series A crunch" suggests that VCs don't have enough money to invest in all the startups that they want to. But almost all VCs have much more money than they know what to do with. They raise huge funds to rake in millions per year through management fees. The problem is that traditional VCs can't manage very many investments. So only a handful of series A VC deals can happen per year. But there is a nearly infinite supply of money just waiting for another way to invest in startups that isn't VC. Things like Kickstarter from the bottom up and AngelList from the top down are the harbingers of doom for most VCs.