

Today’s VC Industry: Too Big to Fail?  - cwan
http://www.pehub.com/101158/todays-vc-industry-too-big-to-fail/

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donnyg107
I think that this whole process is completely natural. At this point in the VC
game, investors will really only trust the most experience VCs with their
money. And it's possible that soon, small VCs with small initial capital and
much more focused investment strategies could garner large returns and take
the stage. Or conversely, big VC funds' exclusivity, emphasis on experience,
and hesitation to hire could turn them into small, successful executors of
their managers' vision, and investors will put their money in new funds at the
managers retire. It could really go in many positive growth directions, but
the point is that this is completely natural. Big companies dominate in
cycles. If they decide to hire, new VCs are ushered in, and if they don't, new
firms take their place. Point is, no company can last longer than the people
who run it, and no trend in the markets can exist longer than the companies
that fuel it.

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neworbit
It's totally reasonable to say "I only want $ from big firms" because they can
actually do followon rounds. As much as USV seems to be regarded pretty well,
their stated preference is to only put a few million in over the life of a
company - if you're expecting to build something capital intensive, you're
better off going with a firm that can back you sufficiently. Even relatively
early rounds ($12M at 60 pre for Uber, etc) are getting done for more than the
smaller VC firms want to put in over the entire life cycle.

