2019 US VC Funds Take A More Boutique Approach

There are multiple types of venture capitalists (VC) who put up money to startups that need some funds to grow. Examples include business angels, small businesses, individual investors, and families. All of these VCs tend to provide support to certain categories of startups. Historically they have been the main lenders of capital to upstarts. That is until a couple of years ago. Since the tech boom of the 2000s a new and increasingly dominant type of investor appeared to snatch high growth and massively scale-able new business up into its clutches: the “supergiant” venture capital fund. These investors dominated the VC market for years and shelled out billions of dollars to startup businesses that they believed in. But Joanna Glasner of Crunchbase.com reports that a new trend may be emerging in the United States VC market — that of the boutique investor. Rather than awarding huge boluses of money to businesses, VCs are being more selective with their money, distributing it in smaller, more focused amounts to candidates. How are VCs establishing themselves in this new niche and what does it mean for startups?¬†Read more>>

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