Every week we share our good reads with the Malpani Ventures ecosystem comprising of Founders and Partners. We thought why not share it with everyone? If you would like to join the mailing list, please drop me a Hi!
* * *
Most of you have read about the changing landscape in VC with the rise of rollover open-ended funds, crossover funds, solo GPs, democratization of syndicates. In this week's good reads we share some of the best pieces which summarize this change and its implications for early stage founders.
Andreessen Pulls a Bezos
https://www.drorpoleg.com/pulling-a-bezos/
A16Z is pulling a page from Amazon's book "Your margin is my opportunity" - A16Z is no longer building a venture capital firm; it is building a new type of venture corporation with a thick management layer that helps support its multiple portfolio companies with marketing, legal, lobbying, and technical resources.
The Changing Venture Landscape
https://bothsidesofthetable.com/the-changing-venture-landscape-6b655c68e631
A good read on the implications of easy liquidity on round sizes, funds and how VCs are evolving (barbell approach)."On the one hand, you’re over paying for every investment and valuations aren’t rational. On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history".
Do You Have a Weak Investor Syndicate? You Need to Know.
https://www.saastr.com/do-you-have-a-weak-investor-syndicate/?utm_source=pocket_mylist
Even in these, The Best of Times for SaaS and Cloud, an important but subtle issue is coming up for a lot of start-ups. Especially these days, when more and more seed, Series A and even Series B rounds are being done by less traditional sources of venture capital. The subtle issue is this: A Weak Investor Syndicate.
Startup CEOs Should Test Strength of Cap Table Every ~6 Months To Know Where They Stand.
A great add-on to the previous blog: Healthy founder <> VC relationships should always have open discussions about capital.
* * *
Until next time 👋