I’ve been noticing some major shifts in how the VC machine operates:
(1) Investors seeking bridge rounds (previously stigmatized), particularly before an immediate mark-up
(2) Secondaries being a buy / sell strategy & a (now positive) way to provide liquidity for founders
(3) Investors moving into “vices” (obvious example: CBD)
(4) LPs preferring to join syndicates, particularly for new GPs, vs. getting locked into a fund
(5) Platforms being a need to have vs. nice to have, & leveraging data, even at the early stages
(6) Mid-range VC firms investing into source funds to get competitive deal access at the pre-seed stages
(7) Investors seeking & building alongside “pre-founders” (proven operators prior to formation) for *massive* multiple potential and sizable equity ownership
(8) GPs selecting a Series LLC (or SPVs) vs LP structure for cost & time savings on formation and legal, and to hook broader LP engagement
(9) GPs selecting rolling funds on AngelList vs. traditional closes
(10) Start-ups exiting via SPACs vs. acquisition / IPO
(11) Influencer solo GPs raising nano-funds & winning due to size of following
(12) Founders selectively engaging investors for a complete power reversal
How do we capitalize on these changes? What other stigmas are now a strategy?
