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The VC Branding Problem

6 pointsby bmcmanusalmost 15 years ago

2 comments

pedalpetealmost 15 years ago
I'm not sure if it matters, but it seems to me the author is comparing early stage VC's with seed/incubator funds.<p>The VC's are playing a bit of a different market, funding the more mature, post-development companies, where the incubators are working in the idea-to-market area.<p>The more conservative and below the radar branding may be an effort in attracting more capital for investment than in getting the start-ups excited about the VC specifically.<p>Just looking at Vantage Point, they report 4.5 BILLION 'committed capital since 1996'. Trinity Ventures recently participated in a 4.2 million dollar round (so assume it's fair to say they put in a few million).<p>Compare that to YC's recent announcement of 8.5 Million fund. I don't know how much YC has raised since inception, but I suspect they may be sub 50 Million.<p>Not so say that YC or any of the seeds should be aiming for the 100's of millions in management. That isn't their market. They are very good at picking VERY early start-up entrepreneurs, giving them a very small bit of capital, and actively guiding them through the process of building a valuable business.<p>Basically, I think the marketing fits the market.
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moolavealmost 15 years ago
I greatly support this idea. And if you mean by branding, it also does have to do with how they present their logos (big difference between the old school venture firms and the seed fund firms)