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Series F - Issue #50 🎉: The Future of Venture Capital


Series F

March 18 · Issue #50 · View online

The Future of Venture Capital

👋🏻 Happy Sunday!
This is Series F, a (hopefully) insightful weekly curation of the latest developments dictating the future direction of the venture capital industry.
Curated by @neilswmurray
Today is the 50th issue of Series F, and as I took a couple of weeks off last December, it also marks 1 year since issue 1!! Happy Birthday to me! 🎉
A genuine thank you to all of you who have provided me feedback in any shape or form and to those of you who have been regular readers since the beginning. It is no exaggeration to say that without your encouragement there is no way I would have made it to a year!
To celebrate the occasion, for those of you who want to show your support for the newsletter (and to keep me accountable!) I’ve used Revue’s new product feature to add a paid option.
I will keep the newsletter free and open to all, however, if you want to support Series F and show your appreciation for the last year, then you can do so below ⬇️

Upsetting the Apple Cart 🍎
“In this post, we are going to explore the paradigm shift of investing in the context of decentralized applications. First, we will briefly explain the history of venture funding and how it evolved in the last few decades. Second, we will discuss the current situation around crowdsales and ICOs. Finally, we will glimpse into the future and look at what’s coming.”
- It’s fitting that crypto dominates on our one year anniversary as it was one of the core topics that made me realise VC was approaching a crucial period in its history and was about to possibly be tipped on its head for the first time. Just a few issues into Series F’s life, Stefano Bernardi published The first real revolution in venture capital: crypto tokens and I realised just how real this threat to traditional VC was. After inviting Stefano to speak on the topic at my event, and then watching him produce his own (amazing) Sunday newsletter, it feels like we have come full circle on the first anniversary of Series F that he assisted with the above post.
- And what this post is, is an excellent and comprehensive look at how VC has been and will be disrupted by decentralised methods of fundraising. Although there isn’t anything “new” in this post, it is one of the best posts I’ve read on the future of VC during my one year of curating this newsletter therefore I had to highlight it, even if it is not the type of article I can provide additional insight to.
- I will leave you with one observation though. Back when Stefano published that post, it really appeared that ICOs were about to disrupt VC immediately and violently. This didn’t happen though (not yet at least). In fact, I’m of the opinion that not only did traditional VC manage to fend off this threat, VC actually disrupted ICOs. Due to traditional VC wanting a piece of the action, they simply moved to being the dominant actors at the pre-sale, before the ICO, meaning not only were they still able to participate they could in fact gain significant leverage. 
- The post argues that this could be about to change though: “Too much private capital can definitely harm network growth. We believe becoming a private investor in a great decentralised project early on is going to become more and more difficult”. For now though, I’m still willing to bet against that, money talks everywhere, even if your world is decentralised.
Due Diligence 📚
1. Cryptocurrency investors are blind to the most important factor of any investment: valuation ~> Making Sense of Crypto Asset Valuation Insanity
2. “Payments company Ripple says it plans to invest in startups and technology companies to develop more uses for XRP, its cryptocurrency that is currently the third largest digital token behind bitcoin and Ethereum based on total market cap” ~> Ripple wants to invest in startups that can put its XRP cryptocurrency to work 
3. No longer a last resort, financial buyouts become an attractive option for VC-backed startups unable to reach IPO stage ~> As Exits Get Tougher, More PE Firms Come to the Rescue
4. Roger Ehrenberg argues that the meaning of “founder friendly” has changed, much to the detriment of the success of the founder/investor relationship ~> The true meaning of “founder friendly”
5. “No risk, no reward. It is old adage and cliche loved by entrepreneur and investors alike. Interestingly it isn’t exactly correct — at least not in the traditional sense” Matt Ward explains ~> Risk vs Uncertainty — What VCs Think About the Problem All Wrong…
Always Be Closing ☕️
All feedback and opinions welcomed: @neilswmurray or
Through my Angel Fund, I invest in the most ambitious pre-seed Nordic startups.
In May I will be spending a week in San Francisco 🇺🇸
I am looking to connect with people who are interested in learning more about or having more exposure to the Nordic and European ecosystem. If that’s you or you know who that is, please do reach out to me! 👊🏻
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