Is No 8 Ventures an old-fashioned 70″s style v.c., or is it part of a new wave of more appropriately scaled venture fund? No 8 Ventures typically invests around $3M into early stage companies, and works intensively with the companies, helping to find good quality investment partners in their key markets, build the management team, and remain focused on a strategy of getting product to market. Matt Miller of Walden VC sees this as what the venture model needs to get back to:
Today, smaller funds of $100-150 million can still lead classic early-stage deals of a few million dollars and take a hard line on whether to play in the next round based on results. Smaller funds can have a handful of partners with deep expertise in their areas and still make solid decisions around a small table. Instead of hoping for one 20-30x exit out of 20 deals, they can focus patiently on 3x-5x exits that are more in tune with today”s M&A than IPO”s. While the partners at those smaller firms will not make a million in management fees each year, they may well make more money for their investors and themselves through profit sharing. And in my view, they will build healthier companies.
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