Mark Suster, a partner at Upfront Ventures, has an interesting article "The Changing Structure of the VC Industry" that recently appeared on Fortune.com. Mark looks at a number of changes that have occurred in the industry over the past several years, including:
The article goes on to discuss how money being invested in the venture industry is being bifurcated between seed funds and large funds, with the concentration of capital in large funds; how the industry has changed due to technology - cloud computing, social networking and mobile; how more value is being captured pre-IPO; and how some non-traditional VCs have entered the late-stage VC market. He then discusses how VCs are adapting to these changes.
It's a good article and worth a read.
Link to Mark's post: http://fortune.com/2014/07/22/the-changing-structure-of-the-vc-industry/
- The growth of the Internet and mobile devices;
- The "right-sizing" of the VC market;
- Declining cost of starting a business; and
- The continuing need for venture capital to scale a business.
The article goes on to discuss how money being invested in the venture industry is being bifurcated between seed funds and large funds, with the concentration of capital in large funds; how the industry has changed due to technology - cloud computing, social networking and mobile; how more value is being captured pre-IPO; and how some non-traditional VCs have entered the late-stage VC market. He then discusses how VCs are adapting to these changes.
It's a good article and worth a read.
Link to Mark's post: http://fortune.com/2014/07/22/the-changing-structure-of-the-vc-industry/
