Spurned
“Spurned”– a cartoon that illustrates how the broad availability of capital has shifted the power dynamic from venture firms to startups.
Historically, a name-brand Sand Hill Road venture capitalist could get into pretty much any investment round.
Entrepreneurs used to see a sprinkling of venture firms providing credibility and serial entrepreneurs stayed loyal to the same firm.
For the most successful startups, these options have changed as there are now many new sources of capital (e.g. multi-billion dollar hedge funds, active and well-capitalized corporate venture firms) and there is a preference to avoid serial fund raising by raising a large amount of capital early skipping out the treadmill of getting additional financing every 18 months.
The question is whether this trend is a function of a frothy market or part of the evolution of private equity finance.
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