No 8 Ventures

The New Old Thing

Posted by: | Jenny Morel | 15.10.2006

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.

Sandhill.com is worth subscribing to.

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