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What’s The Future Of Venture Capital? 10 Experts Share Their Insights

  • 29 June 2019
  • Sam Mire

It's tempting for Joe Daytrader to feel like they know the ins and outs of venture capital after watching a few seasons of Billions. But the reality is that the complex decisionmaking processes that go into savvy investing in companies are beyond most of our comprehension. Sometimes, it helps to have those that know what they're talking about break it down.

These industry insiders lent us their insights on the future of venture capital. Here's what they have to say:

1. Keren Moynihan, CEO of Boss Insights

“In the future, the most successful Venture Capitalists will be those who offer “smart money” to their founders. That means that they take an active advisory role in the business, to help them get to where they need to go. AI will free up investors' time so they spend less of their day manually sharing data and crunching numbers, and more time working to help their portfolio companies.”


2. Oleg Gredil, Assistant Professor at the Tulane University A. B. Freeman School of Business 

“The future looks bright. So far nothing seems to displace VC shops as the key vendor to nurture big scale ideas that change the world. The combination of expertise and incentives alignment that ‘classic VC produces is generally not present in cryptofinance and equity crowdsourcing and yet are vital for many startups. It does not mean that the ecosystem does not evolve significantly eliminating the need for VCs (and Angels) that offer little but money.”


3. Carolina Abenante, founder of NYIAX

“The future of venture capital is much more fluid, and we are seeing new participants entering the space with extreme competition. Additionally, there are many methods to receive funding from qualified investors who have an appetite for alternative investment privately as well as through Reg D or Reg A financing. Moreover, the number of foreign investors from Asia and the EU looking for alternative investment entering Reg D or Reg A offering as a Reg S investor has never been higher. There are many broker-dealers who are available to market these offerings.”


4. Michael Mildenberger, CEO of seriesOne

“In the next 10 years, venture capital will become easier and more accessible to a much broader segment of the population. The emergence of crowdfunding sites over the last few years offered a new paradigm, providing a regulatory infrastructure that enabled many people who were previously excluded from private equity to invest in a business or asset online. Blockchain-based platforms and marketplaces are the next steps in this development. They will make a significantly larger sample of companies and asset classes available to a global investor base and will, over time, transform the investment industry through enhanced security and transparency.”


5. Dave Knox, Strategic Advisor at Predicting the Turn

“Venture Capital itself is likely not changing from its current model but I do believe the future will see every Fortune 1000 company having a play in Corporate Venture Capital and new models for venture capital that don’t require a company to exit through IPO or M&A only.”

 


6. Sara Batterby, founder of Equity Capital Collective

“Venture capital, for the foreseeable future, will probably stay very much the same but will comprise an ever smaller share of the innovation capital market as alternatives that better serve the diverse needs of founders, our economy and our communities are born of necessity and urgency for change.

As these alternatives mature, investors who function as Limited Partners in VC Firms will have options that beat venture capital on returns, for which it has a very mixed track record. The migration of capital out of the VC model is probably what will motivate change and innovation and encourage leaders in that space to think outside of the current VC paradigm of tech-enabled digital scale.”


7. Dennis Shirshikov, Finance Specialist at Fit Small Business

“The venture capital industry is increasingly organizing as family offices in order to skirt regulatory pressure. Family offices are also increasingly active in the space, especially for businesses that require an extensive network of industry contacts to succeed.”


8. Alex Song, CEO and Co-Founder of Innovation Department 

“The traditional VC model for startups is broken, and what we’re likely see happen in the near future is a shift away from this pattern of emerging brands and companies leaning on VC funding early on as a way of jumpstarting growth – the reason for this being that with VC money comes a set of oft-stringent expectations to which a new brand is held. To that end, accepting VC money at the onset of any new venture leaves new brands and startups heavily restricted by the need to meet those expectations, and that in turn leads to quick, VC-satisfying gains taking priority over sustainable (albeit possibly slower, more carefully-calculated) wins that contribute to meaningful growth in the long run.”


9. Viktor Viktorov, founder of REINNO

“The venture capital industry will become more liquid and democratized. The information asymmetry is gradually decreasing as the opportunities previously reserved for selected funds are getting widely available for individual investors worldwide. The opportunities to invest faster, cheaper and 24/7 are making the space simultaneously more accessible and competitive.”


10. Jessica David, Director of Marketing at SeventySix Capital

“The future of venture capital will require a hands-on approach that develops all aspects of a startup while ensuring it can be a successful, independent organization. Startups today rarely rely on capital alone; they need investors who can help them navigate through growth, business development, marketing, and more. At SeventySix Capital, we believe in funding promising sports tech startups and committing to their success through teachable measures.”

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About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.

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