In H1 2011 80% of LP Money Went to Just 7 Firms. The Billion Dollar Club. 7 Firms Total $6.3 $8.1 VC Money Raised ($ billion)
Which Begs the Question of Whether It’s Venture Capital or Growth Equity Seed C-E Round A, B Round
Fund Size + FOMO Driving Separation from Price & Underlying Value Time $ Historic Value Today’s Market
People are Paying Growth Prices for Market Risk Time Valuation Product Risk Growth / Scale Risk Monetization / Competition Risk Market Risk
Probably Less Traditional VCs Being Funded Lately. Seed C-E Round A, B Round $25-75m Typical Fund Size $200-300m $500m-$1bn
Traditionally VCs Have Focused on Few Companies & Deep Commitments 1-2 deals per partner / year Many deals / year
Two great firms have reinvented model by focusing on the “group collective” Ops Support
Founder Email Lists
X-Company Equity Sharing
Heavy focus on “second round capital”
Winning Follow On $$
Some of Best Returns Seem to Be Driven By “Right-Sized” Traditional VCs
Public Openness Helps With Every Major Stage of the VC Lifecycle Access to Deals Winning Follow On $$ Exits Top end of funnel much wider Founders want to work with you VCs work with others they know, like & respect Awareness with buyers for your portfolio
So What is the Next Big Investment Opportunity on the Internet? Television. Yes, really.
Americans watch 5.3 hours of TV / Day TV Reading < 1 Hour 5.3 Hours Media Patterns Online 3 Hours
You Tell Me What the Future of the Internet Is?
But VCs Hate Investing in Content – Hits Driven Business?