VC Industry Evolution: The venture capital industry is evolving into distinct early and late stages, functioning almost as separate asset classes, unlocking new value by embracing their differences.
New Approaches and Strategies: Innovations like continuation funds, prototyped by firms like Lightspeed, are reshaping VC by shortening liquidity horizons and optimizing fund sizes and investment strategies.
Structural Bifurcation: VC is dividing into early stage (pre-seed to Series C) and late stage (Series C to exit), each with its own characteristics, investor base, and liquidity mechanisms.
Economic Considerations: The industry is reconsidering fee structures and the effects of rational market evaluations on returns, especially in the context of recent market shifts that favor fundamentals over inflated valuations.
Why venture capital should embrace divergence · HackerTrans
VC Industry Evolution: The venture capital industry is evolving into distinct early and late stages, functioning almost as separate asset classes, unlocking new value by embracing their differences.
New Approaches and Strategies: Innovations like continuation funds, prototyped by firms like Lightspeed, are reshaping VC by shortening liquidity horizons and optimizing fund sizes and investment strategies.
Structural Bifurcation: VC is dividing into early stage (pre-seed to Series C) and late stage (Series C to exit), each with its own characteristics, investor base, and liquidity mechanisms.
Economic Considerations: The industry is reconsidering fee structures and the effects of rational market evaluations on returns, especially in the context of recent market shifts that favor fundamentals over inflated valuations.