The New Wave

Becky Buckman has a WSJ piece on new-style VCs who invest smaller sums of money, work within a network of known entrepreurs, are more entrepreneur focused, and she claims, are ‘shaking thing up in silicon valley’. Here’s a link to the piece

Sorry if this link is bad. I am doing this from my blackberry.

Becky’s right that there’s a new way of doing deals. We’ve done about half of the investments in our fund this way.

And I suspect the more traditional established firms will start adopting some, if not all, of these techniques

The fact is it costs less to start a web company these days which put the founder(s) in a stronger position

But that doesn’t mean that the venture business is at risk. Like all businesses you need to adapt to a changing market environment. We’ve done that and I exoect most VC firms will do the same

#VC & Technology

Comments (Archived):

  1. vruz

    de-uglified link below:VC’s New Math: Does Less = More?Thiel Seeks to Change Old Habits by Investing Small on Start-UpsBy REBECCA BUCKMAN

    1. fredwilson

      Thanks vruzI will try to fix when/if I get to a real browser todayFred

  2. Douglas Karr

    I’ve been introduced to this in Indianapolis as well. I’m not a VC but the folks that have contributed to my company are board members and advisers and have invested in tens of other startups in the region, too. It’s fascinating and is really quite encouraging… it means we’re not alone! We often advise each other and try to help each others’ businesses as well.On a side note, startups in Indiana cost about 20% less than in other regions because of the low cost of living, low taxes, and work ethic (less Workman’s Comp). That said, finding (and keeping) talent is always the issue!

  3. brianlash

    Great, but why not expand on the way VCs like you have adapted to their changing roles.

    1. fredwilson

      I’ve done at least a dozen posts on that over the past three yearsMaybe I’ll go find all of them and compile a listBut I’m on vacation right nowFred

  4. Berislav Lopac

    Here’s the direct link to the Web page.

  5. aizheng

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