What Does the Future Hold for the Venture Capital Industry?
What Does the Future Hold for the Venture Capital Industry?
Like any business industry the venture capital industry is subject to ebbs and flows, which means changes are bound to occur. Trends come and trends go and those who are able to identify the newest and latest trends the earliest tend to be the most successful at what they do. At GROCO, we work and associate with many of the nation’s top venture capitalists. Every venture capitalist is different but they often share similar ideas and answers to the questions we pose. I recently spoke with David Silverman, a Partner at Crosslink Capital, and we discussed the venture capital industry as a whole. During our discussion, I specifically asked David what trends he sees now that will affect the future of the venture capital industry, as we know it?
Buying Decisions Have Changed
David said he sees the VC industry at a hinge right now and that that “hot hinge is that the buying decisions have fundamentally changed. So what’s interesting is that several tailwinds have changed.” David explained that one of these changes is that computational powers are practically free now. What used to cost tens of millions of dollars can now be accessed by young people with a credit card who can compete with AWS, Microsoft Azure or Google and have access to all the competition power in the world. “The second piece which is interesting is corporate America, actually the corporate world, is completely re-architecting there IT stack. So we’re seeing as venture capitalists the opportunity to go sell in completely new solutions across everything from the hardware all the way through the application in corporate America.
Change Is the New Normal
David said that the third interesting piece of the puzzle, which is much different from the norm, is that the decision-makers have finally changed. Back in the 80s and 90s CIOs were your customer, but that has changed and now developers are your customers. David said they make different decisions and how you get to them is also different. He also said that the rate of change and the pace of change are fundamentally different. “We’re living in a world where everything is being re-architected. The buyers are different and the software and methodology by which people buy things have fundamentally changed. So it’s a flywheel which is moving very, very fast and it creates opportunity across the whole spectrum of the kind of businesses that we back.”
Keep a Close Eye on the Trendsetters
There’s little doubt that the venture capital industry will continue to experience change, just like any other industry. The fact is almost any industry has to change or it risks becoming stagnant or even worse, irrelevant. By following the trends and decisions of the most successful VC companies one can stay on top of the changes and continue being successful.
We hope you found this article about “What Does the Future Hold for the Venture Capital Industry?” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Not Your Mother’s Pants!
What happens when you mix a charitable auction with a famous pair of pants from an iconic movie worn by a legendary international superstar? A six-figure donation to cancer research and a lot of very happy people… On November 2, 2019, the Estate of Olivia Newton-John listed several items on Julien’s Auction. The famous actor…
New Guidelines for Deferring Payroll Tax Obligations During COVID-19 Disaster
New Guidelines for Deferring Payroll Tax Obligations During COVID-19 Disaster New guidelines for deferring payroll tax obligations during COVID-19 disaster. On August 8, 2020, President Trump issued a Presidential Memorandum (Notice 2020-65) directing the Secretary of the Treasury to use his authority pursuant to section 7508A of the Internal Revenue Code to defer the withholding,…
Should I Move Out of California Due to the Proposed Wealth Tax?
Should I Move Out of California Due to the Proposed Wealth Tax? Why now? I am currently getting a lot of questions from individuals wanting to change their state tax status to California non-resident due to ab2088. Ab2088 known as the Wealth Tax, is a bill going through the California legislation process. “This bill would…
COVID-19 Stimulus Round 4, which plan will go into effect?
COVID-19 Stimulus Round 4, which plan will go into effect? Many people have been looking forward to the government’s next round of COVID-19 stimulus– sadly, the fourth wave of COVID-19 relief and the laws around it have become highly politicized and appear to be caught in gridlock between the House and Senate. While both Republicans…