Cottage Industry LBO Boom Platform Services Democratization Future

Prominent VC

• Funds focused on
business model or
Funds

• Proliferation of VC
• HNIs and Family funds
Offices • Emergence of CVC
• Limited supply of the • Changes in ERISA &
capital Enactment of Revenue
Act
• Enactment of Small
Business Investment • Market crash in 1987,
act VC funds reported loss
due to increased
competition
Companies
technology. For
example Pi-Ventures
in India, SaaStr and
Acceleprise.
• Democratization of
startup investments
with more and more
non-traditional
• Rise of seed stage • Rise of micro-VC
investor
accelerators. funds.
DOT COM Bust participation.
• VCs started offering • Introduction of
• Bigger fund sizes
other value added SAFE notes.
services along with (Softbank Vision
• Founder friendly fund)
the capital.
funds
• Data-driven, new
operating structure.
• New sources of
financing – revenue-
based, debt funds,

SPACs, ICO etc.

• Rise of platforms for
providing liquidity to
the investors.
1960- 1980 1981- 2000 2001- 2004 2005- 2012 2013- 2018 B ey o n d 2018
 Investing Styles of VC Funds

People-first VC funds give utmost importance to the

INVESTING IN founding team. Professor Doriot puts it succinctly “Always
01 PEOPLE consider investing in a grade-A man with a grade-B
idea. Never invest in a grade-B man with a grade-A idea”.

Funds focused on investing in technology/product or idea

INVESTING IN give substantial weightage to technology. This sort of
02 TECHNOLOGY investing style was pioneered by Tom Perkins, the founder of
famous VC fund - Kleiner Perkins.

These VC funds looks for the opportunities that has a large

INVESTING IN total addressable market (or has a potential to reach there.
03 LARGE MARKET
OPPORTUNITIES
Typically $1 Bn+). In their view, technology and team will
evolve and improve. Don Valentine was one of the first
investor who exemplified this style of investing.