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The Lost Art of Early Stage Venture Capital
First, most emerging firms raise small funds. Smaller funds generally outperform, as they can participate meaningfully in early rounds and a single outlier has the potential to generate strong fund-level performance, even if the fund is only able to garner modest ownership.
Francesco Perticarari • Why new VC funds offer the greatest opportunities in Venture Capital
This has a significant impact on the competitive advantages of a firm in the market as it scales. When party rounds were the standard course for smaller seed firms, connections were the scarce skill set, enabling access to deals led by other reputable firms. As these funds have become larger and rounds have become increasingly tighter, conviction b... See more
Venture capital is undeniably a subset of private equity. However, approaching the industry from that perspective ignores the vast majority of what VCs actually do: bring new technologies into the world by helping build companies, from tiny startups with a couple of cofounders to potentially hundreds of employees and millions of customers.
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
Second, because VCs are investing earlier, they are taking far more risk on the ability to scale up these technologies, even if they can be proven to work.
Danny Crichton • Lux Capital Page Not Found
Venture capital has delivered great historical returns but is illiquid and hard to access. Fortunately, innovation does not occur only at venture-backed startups.