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Series F - Issue #41: The Future of Venture Capital


Series F

January 14 · Issue #41 · View online

The Future of Venture Capital

Yes, I realise we are halfway through January, and yes, you really should have heard from me by now.
I had planned to experiment with a Friday send-out, however as Friday afternoon snuck up on me, I realised that this was really not going to work out for me…. 
I had felt like a failure, but then Niklas helpfully pointed out that my experiment had indeed been a runaway success, I had determined a clear outcome…. 😂
So, Sunday it remains. However, this issue does contain some changes (new year and all that…) based upon your recent feedback.
Each issue, I’m going to provide my quick insight on what I felt was the most interesting story of the week, before providing around 8-10 other interesting links (based around the previous headers/topics) that I believe are worth your attention when it comes to the future of VC. I’ll try this for a few weeks before checking in with you all again on this format.
Without further ado then…

Upsetting the Apple Cart 🍎
In partnership with Accomplice, AngelList announced Spearhead, a $35M fund that funds and mentors founders with up to $1M of capital to back other founders.
Founders earn 15% carry, equipped with check writing authority, the support of angels in their cohort, as well as seasoned investors like Jeff Fagnan, Naval Ravikant, Cack Wilhelm, Elad Gil, Jake Zeller, and others.
Each fund is powered by AngelList Angel Funds to offload all of the legal setup, backoffice management, and expenses that go into setting up and operating a venture fund.
Why does this matter?
- Founders have the best dealflow. They are amongst the action, the grassroots of the ecosystem and are often the first to know about who the new (interesting) companies are sprouting up around them.
- The previous attempts by the venture industry to tap into this knowledge has largely revolved around the venture scout model. However, Spearhead provides prospective investors with a greater autonomy and direct capital, something that typically lacked in the more traditional venture scout model.
- A lot of Founders want to give back and eventually invest but don’t have the required time or capital while they are still running their company. This provides them with an easy vehicle to start doing this, while not requiring their full capacity (largely due to the back office being taken care of by AngelList) and enabling them to start giving back and build a track record.
- Ultimately, and why I think this matters so much, is that by providing founders with the tools and capital to start investing before they exit this accelerates ecosystems by putting additional knowledge and capital to work now.
- A lot of this thinking also formed the “why” of my own Angel fund (Disclosure: Also raised with AngelList)
Due Diligence 📚
1. Network is undoubtably one of VCs biggest potential strengths. Ali Partovi’s latest venture is looking to double down on that and then some. Neo pairs a $37 million investment fund with an exclusive professional organisation ~> Tech’s latest innovation looks a lot like a social club 
2. ICOs are increasingly attracting the attention of regulators. In France and Europe measures are already starting to be taken ~> Initial Coin Offering (ICO) : is regulation inevitable ?
3. They’ll have to move quick though, Vitalik Buterin is already proposing an improved method of raising funds through ICOs by merging in some of the benefits of DAOs ~> Explanation of DAICOs
4. A fair few funds that were announced around the holiday period caught my eye: InVision is investing $5 million in design startups with new fund
7. Sometimes it helps to look at the industry from a founders perspective to understand where we can improve (particularly from a communications perspective) 5 reasons you won’t get funded that aren’t your fault
8. Reader Wing Vasiksiri got his crystal ball out and looked specifically at what the next 10 years might have in store for the venture capital industry ~> Venture Capital in 2028
9. Putting aside the argument regarding the details of what did and didn’t happen, it seems pretty certain that these type of parties won’t be around much longer ~> “OH MY GOD, THIS IS SO F—ED UP”: INSIDE SILICON VALLEY’S SECRETIVE, ORGIASTIC DARK SIDE
Always Be Closing ☕️
Love, hate, indifferent to the new format? Let me know on or @neilswmurray
And if you did happen to love it, why not share this issue on Twitter and Facebook 👊🏻
Until next week!
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