Innovation In Venture Capital

from the what-an-idea dept

As this article points out, for an industry so focused on investing in innovation, the venture capital industry itself hasn’t done much innovating. So, here’s a profile of a new venture capital firm that is focused on investing in smaller communities by setting up an “affiliate” system of sorts. They find a local VC firm and once approved, they support them from the main firm, and co-invest. They also put one general partner into the fund and provide help with other things such as legal and accounting help. It’s almost like the franchise model of VC investing. So far, it’s unclear if it will work (and most attempts at changing how VC works have failed – see the example of MeVC), but it’s still interesting to read about different attempts. I’m a bit skeptical. While I agree that there are obviously some gems in the rough in non-traditional places that could make lots of money for a VC firm – there is a reason that venture capital tends to clump in certain areas. The infrastructure that helps build startups is clearly in that area – and that can make a big difference.

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