Here’s the Scoop
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.