Venturebeat has a great summary on whats happening in the venture capital world. While the specific conversation is focused around US, some of the aspects have relevance in other markets like India. From new deal structures, building profitability versus value (when there is a tradeoff), virtualization as a macro trend, kids as a market, evolution of angel investors, capital efficiency, globalization (including India), growing size of venture firms and more – what does come out clearly is the divergence in opinions of various VCs, and thats a good thing in my mind.
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Another trend I’m noticing (which was not talked in that breakfast meeting as reported by VentureBeat) is that a lot of deals, even the small, early stage ones are getting syndicated between more than 3-4 investors.
For example, today Santa Cruz based UserVoice announced Series A with 7 investors in the syndicate viz. Dave McClure, Baseline Ventures, Betaworks, David Shen Ventures, Accelerator Group, Vincent Worms and Howard Lindzon.
More hedging and “beta-substitution” by investors? or smart entrepreneurs harnessing the networks of multiple investors for the same amount of money?
Indus
This is part deux of the changing face.
Earlier, the VC industry was owned by wealthy people and the money came from non-tech sources. As the process got refined the financiers became LPs and then sector specific specialists came in to manage the money. Further refinement led to entrepreneurs, veteran executives, etc. managing the money.
Good for all of us!