How Venture Capital is Changing, and Why it Matters

Venture capitalists are bankers with better branding.

Friends and I traded that joke back and forth in the 2010s. A fiscally cautious response to the Great Recession contributed to a slow, if steady, economic rebound, spurring central banks around the world to maintain historically low interest rates. This cheap-money era motivated money managers to chance ever-riskier asset classes.

Big money flooded funds focused on every stage, from a startup’s first check all the way to its IPO.