Have traditional Venture Investment companies outlived their usefulness? What is taking their place.
Have traditional Venture capital investment ocmoanies and their operational models outlived their usefulness and is their an emerging model that tracks to the kinds of ideas that have evolved and are entering the market. Are there fewer successes with traditional VC versus other methods such as incubators and accelerators where the funding follows different acceptance criteria and perhaps measures risks differently.
What does the future of investment capital management look like and are there any model companies practicing noteworthy methods that have acceptable success rates?
In United States private equity firms. I see more and more groups with domain expertise that have started to take an active role in shaping portfolio companies' strategies, sometimes forming a conglomerate that can generate private-equity style returns in the 7-10 year horizon.
I am not sure there is a mechanism to measure risk differently. Risk, like beauty, is the eyes of the beholder. This is why private equity firms can develop the domain expertise to understand risk, and, potentially mitigate it through access to capital and talent.
Accelerators and incubators are useful for helping inventors of a new product/company to validate a business opportunity at the early stages and vet good teams. This is why they always have demo days - to show their wares (and accomplishments) to the VC firms. By the very nature of a funnel, accelerators deal with a larger number of clients, and require a different skill set than nurturing a companies around a specific investment thesis.
Technology Assisted Capital Raise
I am not sure if new but very much technology assisted and perhaps more common in the future.
1- A Dutch auction is a public offering auction structure in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold.
2- An unregulated Go Fund Me type platform.
4 months ago