Quote of the Week: Venture Capital Evolution


August 29, 2013

“The dramatic drop in the cost of creating a company over the last decade… has had an obvious effect on the venture capital world. Serious venture investment is not required in the earliest stages of a company’s life, so angel investors have been getting the best seed deals.”


Who said it: Erin Griffith, reporter for Pando Daily


In Context: Money has become a commodity in venture capital business and angels are getting all the good startups, says Griffith in a feature article. Over the years, VCs have had to adapt to changes in capital requirements and tech trends to attract the best entrepreneurs. They established brand names in the normally at that time secretive private equity world, then they went international and on to create super angel funds and accelerators. (See Heardable for the top brands in VC in 2012) Now they are adapting again, especially some of the VC Silicon Valley players. VC firms, like Andreessen Horowitz, have adopted agency-like models, where they provide in-house PR, marketing and recruiting, while others have become community builders enabling their portfolio companies to share knowledge and help each other, says Griffith. They are even becoming publishers with professionally produced content on their websites. For example, Andreessen Horowitz hired Wired editor Michael Copeland and Battery Ventures hired former Wall Street Journal reporter Rebecca Buckman.  (Image credit: TrustedInsights)


Where we found it:  Pando Daily

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