The impact of venture capital on the innovation economy makes it an essential tool for corporate leaders and investors alike. With VC operating at all-time highs and its broad impact on every business sector, it has never been more critical to understand the workings of venture capital.
The impact of venture-backed innovation to benefit society is in plain sight:
- Critical major vaccine breakthroughs to address the pandemic were created by venture-backed companies [e.g. Moderna and Vaccitech/Oxford/AstroZenica]
- Venture-backed companies enabled the work-from-home transformation and all-important resiliency [Zoom, Slack, et al.]
- Food delivery [DoorDash, et al.], Education, Health Care, everywhere one looks one can see the impact
All this rests against the backdrop of venture capital itself undergoing tectonic shifts:
- Records levels of venture capital activity
- Record levels of IPO activity, and new structures [e.g. SPACs] providing expanded access
- New global investing strategies
- New Venture firm structures [e.g. Sequoia, Angel funds, University shared carry funds etc.]
- New sector participants [e.g. Tiger Global, Softbank] making waves
Understanding venture capital, the players, the structures, and the opportunities is an essential skill for every sophisticated investor, entrepreneur, and corporate manager engaged in the innovation economy.