Hi Mahendra, what a huge honour this is for me. It was reading your book that inspired my love of the VC industry which led to my creation of www.thetwentyminutevc.com (podcast). My question is with the rise of AngelList syndicates, 'Super-Angels' and alternative financing methods like crowdfunding, do you feel the VC industry is being threatened? What can VCs add that these alternative methods of finance cannot? Again, such an honour and can't wait to hear your thoughts!
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Hunter
@harrystebbings Thanks for your kind words. My $0.0002 on the VC industry is that the world is progressing towards 3 kinds of funds - one is the big big $1bn+ funds (A16Z / Bain Capital types), second is the smaller, high touch, heavy engagement types. These funds range from $50m to $250m. The third category is where we have seen a lot of innovation in the recent past - Angelist / MicroVcs and such. I don't think the fundamentals are being threatened - founders will need money and VCs are eager to invest - with Angellist, we have speedier / streamlined processes, efficient engagement & very high analytical data. This has removed opacity around the "angel" end of the spectrum. We need more clarity / speed and data at every level of funding. All of these changes are benefitting the entrepreneur which is exactly how it should be. Finally, predicting change is not that simple / easy. As Fred Wilson correctly said & I paraphrase - "In 20 years the VC model would have changed substantially, we just don't how it will change"
It is my pleasure to introduce Mahendra for an AMA today at 12PM PST. He is the author of The Business of Venture Capital and co-author of Startup Boards, recovering VC and catalyst for security startups. Ask questions in advance.... :)!
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