Venture Capital Is Ripe for Disruption
This is never how it actually happens, but you get the idea. Startups should receive risk capital to literally derisk certain aspects of the business.
However, over the last decade or so, something shifted. Traditional venture funds that specialized in early-stage risk started to add buckets of “growth equity” that were supposed to be utilized for ... See more
However, over the last decade or so, something shifted. Traditional venture funds that specialized in early-stage risk started to add buckets of “growth equity” that were supposed to be utilized for ... See more
Evan Armstrong • Venture Capital Is Ripe for Disruption
The best example of this alternative product is Indie.VC, run by Bryce Roberts. Over the course of 6 years, Indie invested in 40 companies. It held the two key components of limited fund size and gave equity optionality through redemption clauses or equity buybacks. The results are encouraging, with a 51% IRR and 4.3x TVPI, while 87% of the compani... See more