Many have questioned whether the golden days of venture capital are behind it, but as Mark Suster argues, there’s a case to be made the best is actually yet to come.
“I can’t help feel a bit of rear-view mirror analysis in all of “VC model is broken” bears in our industry,” Suster writes in a post for his Both Sides of the Table blog. “I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us.” Suster lays out seven factors that point to a potential new “morning in venture captial,” including the explosive increase in startups being created, the drop in number of active VC firms, and several factors that are feeding into the revolutionary growth of online business, such as online, mobile, and payment-ready capabilities.
As Suster puts it, “we have lower costs to create companies – leading to more early stage innovation. We have a more normalized venture market with less capital and fewer firms. We have consumers who are online at higher speeds and for more of their days. People are connected all the time and when they’re mobile. Each of these pocket computers is payment ready & social linked…. These seven factors are leading to better and more sustainable opportunities in venture capital than have been present at any time in our investment histories.” For more on why venture capital’s best days may in fact be ahead of it, read Suster’s full post here.
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