Coalition: A new fund meets new economic model
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Coalition: A new fund meets new economic model
Yope Is Sparking Gen Z (And VC) Interest With an Instagram-Like App for Private Groups | TechCrunch
Ivan Mehtatechcrunch.comVC firms often come together in a deal by syndicating, meaning having multiple VC firms participate in an investment round.
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
In the past, there have been many attempts at disrupting venture capital:
- The proliferation of angel investors (AngelList, 2010)
- Enactment and regulation of equity crowdfunding (Jobs Act, 2012)
- Cryptonative crowdfunding via token sales (2013)
Medium • Unbundling the unit economics of venture capital via DAOs
The tech industry is built on the venture capital model where hockey stick growth and selling to a larger company or going public are markers of success. But the traditional VC model does not leave much room for startups that might not be the next unicorn but still generate revenue — just not the type of returns investors are looking for.
Techcrunch • Instead of IPOs and acquisitions, exiting to community is one alternative
More firms are incubating companies as early-stage valuations rise.
A few successes:
• Snowflake ($49B mrkt cap) by Sutter Hill Ventures
• Affirm ($6B mrkt cap) by HVF Labs
• Hims & Hers ($1.3B mrkt cap) by Atomic
Our latest Signature Block essay is on venture studios...
54:50 - Slack created a venture fund attached to their ecosystem so they would try to be financially aligned with their ecosystem as much as they could.