The Next Big Small Thing

Here’s the Scoop

http://techland.blogs.fortune.cnn.com/2008/07/22/vcs-big-on-small-investments/

 

Here’s the Summary
According to a panel of Silicon Valley investors, “The next big thing in venture capital is small investments.” With a closed IPO market and few M&A deals to speak of, “investing in companies that don’t require much capital to get going – and therefore don’t require investors to hold out for large-scale acquisitions,” seems to be the answer according to VCs like Dana Settle, a partner with Greycroft Partners. “It’s a different game now – we’re not looking at companies that require $20 million anymore,” said Settle. “But there are big opportunities for smaller funds, and there are a ton of companies that just don’t need that much capital.

Here’s Our Take
It looks like the industry is starting to speak our language. Cava has advocated from the beginning that investing smart capital is all about appropriate investment size, an active approach and solid company evaluation.  Too many VCs are still built for $20mm investments while we are purpose built to put more efficient dollar amounts to work. As Danny Rimer, a partner with Index Ventures, puts it, “if you build a company with value you will find an exit.”  We couldn’t agree more.

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About cavacapital

Cava Capital is a venture capital firm targeting go to market stage investments (series A and B) in next generation marketing solutions companies primarily in the Metro New York region. We are business builders, actively assisting our CEO's in the critical areas of Sales, Business Development and team building, bringing our exceptional and deep network to each and every portfolio company to help drive success. We prefer enterprise facing companies, but aren't scared off by the new consumer models.
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