Capital is a commodity - TechCrunch
Even after the an unprecedented year of 2022, VC markets boomed in 2022 and founders raised 157% more capital in the second quarter of 2022 compared to the previous year. Global VCs has invested $ 268.7 billion in July 2022, already surpassing the total investment amount in 2022.
In emerging markets, where our company Seedstars is the focus, VC capital flows have been growing 40% year on year but still represent less than 4% of global sizes, despite accounting for the majority of the world’s population. Whether or not you think this is a bubble, one fact remains true: Capital is a commodity.
Some capital flows faster than others and investment terms need to be considered, but assuming all things are equal, the true value is outside the capital. It lies in the knowledge, network and support that an investor brings to the table.
It is not just an idea of a known market or movement. De Santis Breindel asked Headteachers what the main assessment criteria were when choosing a VC company. The company's reputation came first, followed by its ability to add value to portfolio companies beyond financing. So how has the industry dealt with this?
“Money wise” and the VC platform
At some point, the idea of “smart money” slipped into the VC’s lore referring to the idea that some money also came with knowledge that is in high demand and likely to attract investors. others gather.
Today, the evolution of the idea has given us the “platform” of VC. Money wise was certainly an attractive phrase but it was not institutional enough to turn it into something official. The concept of a platform, on the other hand, offers more room for innovation but still leaves most founders (and even some platform managers) through- each other. So the big questions are: What exactly is a platform? How does it add value? Do you need it as a starting point? How can you evaluate it? Read on.
T-shaped platforms and the Tetris will be appropriate
Keep two rules in mind: