The Future of VC

a duel prioritization of capital and consulting.

Where is the world of VC heading?

• Toward an increase in investments to expand rosters?

• Larger check sizes in fewer orgs?

• More hands on action with their portfolio companies?

I think it's the latter. Given the latest with COVID-19, some companies soared, but most experienced hardship. Depending on a VCs diversification or focus of their portfolio they may have felt the impact slightly, significantly, or not at all.

For those that felt it significantly, it’s time to hunker down and try to fix what once might have matched well with market scope and consumer demand. Maybe this will help VCs realize just how much more they can control by exhibiting a stronger focus on running a business as opposed to only considering the investment math. (hot take, I know)

If the winds are pointing VCs to focus on their ongoing investments, it will be essential that they can offer pristine guidance, resources, and support in the coming years.

These next years might be where Sequoia thrives the most or becomes the most threatened. With an inward focus, Sequoia may experience an uptick in competition from a variety of unexpected players.

It will be fascinating to understand Sequoia’s customer service fortification. If other’s begin prioritizing portfolio guidance, will they be able to render more favorable results and therefore more attractive investments?

This is a long-tail play that will unfold overtime. Again, Sequoia has been tackling this angle for decades and it may be an uphill battle for competitors to attain the level of expertise Sequoia consistently offer’s its portfolio companies. Yet, the world is moving faster than ever. Many skillsets in the technology space can no longer be ‘taught’ in a classroom.

Hands on experience and an agile mindset move the needle.

So while Sequoia may have a tried and true process, process must always change to match its environment.

It is important to note that it is also very difficult to modify historical ways of working.

All in all, it has always fascinated me that when VCs come up in conversation, the discussion is largely about the financial investment of venture capital but not the actual management investment that often appears could go a longer way in return on investment than the writing of a check.

That is also where it gets interesting.

VCs are funds that invest, but also must consult.