Venture model
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The venture model has evolved significantly over the years, influencing how venture capital firms operate and invest. Here are some key insights from various experts on the subject:
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Unique Venture Models:
- Heather Hartnett of Human Ventures discusses their innovative model that combines traditional fund investing with a business creation platform. This approach helps back exceptional founders by providing both capital and a structure for creating new businesses 1.
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Cyclical Nature of Venture Capital:
- Naval Ravikant explains the cyclicality of venture capital, noting how funds often grow larger and move away from their original strategies, creating new opportunities for emerging investors. Despite the small percentage of global capital going into startups, the potential for increased investment remains promising 2.
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Broken Venture Model:
- Martin Casado from Andreessen Horowitz argues that the venture model needs to evolve. He suggests adopting a more mature investment approach, similar to those in the real estate market, to better align with the current state of technology and capital 3.
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Studio Models and Co-Creation:
- Patrick Chun discusses the rise of studio models or co-creation models within venture capital. These models focus on serially creating companies with external entrepreneurs, differentiating from traditional corporate structures by emphasizing independence and external talent 4.
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VC Dynamics and Market Shifts:
- Ravi Mhatre touches on the need for venture firms to adapt their investment strategies, emphasizing operational discipline and long-term planning over mere capital growth. The market environment requires founders and firms to embrace change and seek partnerships to navigate transitions 5.
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Creativity in Venture Studios:
- Gary Vaynerchuk highlights the value of the venture studio model for creative individuals. This model allows for incubating multiple businesses, but it also requires managing the increased energy demands if one venture takes off 6.
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Evolution of the Venture Industry:
- Phin Barnes discusses the evolution from a one-to-one relationship model in venture capital to a more industrialized approach. He critiques the current service differentiation attempts, which often result in increased costs and less personalized attention to founders' needs 7.
These discussions reflect a multifaceted view of the venture model, covering its historical context, current challenges, and potential future directions.
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