Venture Capital

Changing Venture Capital Landscape

By July 23, 2014 No Comments

Where are we today?

  • We have 2.4 billion Internet users, or 50x more than before.
  • Online connections are 180x faster at 10.5 Mbps.
  • 164 million US smartphone users gives us “always-on” mobile connectivity
  • We’re all socially connected, so great businesses spread faster.
  • We all have one-click purchase power through Apple, Google, Amazon and eBay.
  • The VC market has right-sized, returning back to mid 90’s levels with less competition.
  • The cost to start a business is 95% lower, meaning many more companies are created and funded by angel and seed investors.
  • It still takes venture capital to scale a business, which means large amounts of capital go into industry winners like Uber, Airbnb and Snapchat.

It doesn’t take a huge leap to see how well the VC industry is positioned for the immediate future. LPs have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began as it is forecast that between $25-30 billion to be invested in some 200 venture funds. Where will these dollars go and how is the industry changing?

Read the slide deck below to get an excellent overview of the venture capital industry:

It’s morning in VC

(Sources: Upfront Ventures, Fortune Term Sheet)

 

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