The Venture Capital "Bigger is Better" mantra is facing serious pushback!
As Erin Griffith of The New York Times noted:
In recent years investors poured billions of dollars into unproven start-ups with little diligence and investment firms expanded rapidly into new strategies and geographies.
Last year, venture capital managed $1.1 trillion, up from $297 billion in 2013, according to PitchBook, which tracks start-ups.
The growth was, in some ways, a natural result of the outsize expansion of the tech industry over the last decade. The five most valuable public companies — Apple, Nvidia, Microsoft, Amazon and Alphabet — were initially backed by venture capital. And since many tech start-ups stay private longer than they did in the past, there were more opportunities for venture funds to back them.
However, a new wave of investors is rethinking the traditional model, focusing on fewer, more intentional investments that prioritize sustainability and long-term value over massive funding rounds. 💡
At Applied Real Intelligence LLC ("A.R.I.")., our Senior Secured Growth Credit Fund provides investors with a safer way to access innovation by utilizing a focused, disciplined strategy.
We’re going to demonstrate that growth and innovation and profitability are not mutually exclusive and all three can be had without taking excessive risk. 🌱
Is this the future of VC? Let’s talk! 👇
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3moDiversity has never been a call sign of outsized returns. The more holdings a fund has, the more difficult it is to achieve meaningful returns.