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Series F - Issue #42: The Future of Venture Capital

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Series F

January 21 · Issue #42 · View online

The Future of Venture Capital


👋🏻 Happy Sunday! Thanks for all of your kind feedback following the new format in the last issue. It was overwhelmingly positive and provided me with a new-found energy for pulling this together each week. Thanks! 🙏🏻
Let’s keep it short and sweet once more! 🍭
Curated by @neilswmurray

Upsetting the Apple Cart 🍎
From Steve O'Hear: “Entrepreneur First (EF), the London-headquartered company builder that invests in individuals “pre-team, pre-idea” to help create new technology startups, is continuing to expand internationally. Following adding an outpost and program in Singapore, in addition to London, the so-called talent-first investor is setting up shop in Berlin, kicking off its first German program this April”
Why does this matter?
- If you’d consider what YC would have looked like if it started today, I believe it would look a hell of a lot like EF. I don’t throw the YC comparison around lightly, but I am of the belief that EF has the potential to have a similar impact as YC has had, and on a wider global scale. 
- Talking of global, Berlin is likely to be the first of many expansions we’ll witness in the next year or so. As EF investor Reid Hoffman himself foresees: A universe in which there’s 20 or 30 or 40 cities, maybe even 50, where Entrepreneur First is integral to creating a set of interesting tech companies in those areas”
- What is particularly interesting to me here, is how EF leverage the power of each ecosystem’s particular talents across their global network to complement each other. I often think about how amazing it would be if you could match the Nordic’s technical talent up with London’s commercial talent. EF now look to be capable of fulfilling such a vision.
- With the ongoing emergence of innovative pre-seed funds, venture networks and company builders like EF, we are seeing the earliest of early-stage disrupted like never before, the consequences of which we are yet to fully appreciate and are likely to affect all stages of the funding pipeline in years to come as Semil Shah pointed out.
Due Diligence 📚
1. We touched on the flaws with the traditional venture scout model in the last issue with AngelList launching Spearhead. However if anybody has been close to making it work well then it’s Sequoia. They’re now consolidating all of this early-stage activity into one fund ~> Sequoia Capital just closed a giant new seed fund — and here’s how it works
2. AngelList’s partners in Spearhead are Accomplice. They just raised their second fund and explain a little more about what they are up to here ~> Dead reckoning: introducing Accomplice II
3. Statistics from the hedge-fund world show that those led by women outperform by 20%. Despite this, female-led hedge funds struggle to raise capital. There is definitely some parallels in the latter in the VC world, let’s hope awareness of the former can help change this ~> Hedge funds run by women outperform by 20%
4. This corporate VC fund clearly means business… ~> Renault-Nissan-Mitsubishi Launches $1B Innovation Fund With Tel Aviv Office
5.  In emerging ecosystems, it sometimes takes public money to get things moving. Australia is facing calls to make this happen ~> New calls for govt VC fund
6. InvestX is a new fund that takes cryptos to invest in a traditional asset class, specifically private companies about to go public ~> As Bitcoin Tumbles, New Fund Offers Crypto Investors an Easy Exit
7. In the same “crypto disrupts VC but not in the way we thought” vein, as Omni raises from Ripple, Parker Thompson nails it 
8. With the power balance (rightly) shifting back towards the founders, VC firms are considering new ways to sell themselves, transparency appears to be a decent strategy ~> An early stage startup investor made its term sheet public to increase transparency in tech investment
Always Be Closing ☕️
Interesting articles or thoughts you’d like to share with me? Please do ⬇️
@neilswmurray or neil@thenordicweb.com
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