There are more and more Venture Capital funds on the market.
There is quite a common trend now that people, previously working in VC, leave the company and raise their own funds. Having great experience, gaining trust on the market for several years they roll their sleeves up and build new venture funds in line with their own believes.
Do they have a chance to succeed and attract startups that may rather go and work with bigger, more recognised VC? It may look like the VCs compete and fight for the most promising startups, that they are against each other. It’s just a superficial impression. When we look deeper it’s completely different model. I dare to say that all VCs are complementary to one another.
Every single VC company is unique and has their own individual mission and vision. They look for particular type of startups and work in some specific way. They specialise in concrete market and have long life experience in that particular one.
Why do people change the VC they work for? They are not all the same, people look for what they identify with the most. It’s a matter of time until you learn if you fit into the mission of the VC you are with or you look for something slightly different, if you enjoy discovering founders in healthcare or you are somehow more interested in FinTech.
Venture Capital funds are perfectly distributed and organically pop up where they are needed. They can cooperate together directing early stage companies to the fund specialising in particular markets. On the other hand, startups will not knock on the door of VC that do not really know much about what they do and they will look for a partner who knows the market and comes together with a huge network and potential customer base.
And at the end it’s a startup choice with whom they want to work and which VC better fits to the vision of the company they want to build.
