How venture capitalists spend their time — the change from the 1990s to 2022

  • Increasing number of investments: Historically, a group of general-partner managers would manage a limited number of deals. As venture capitalists started to play a larger role in startup ecosystems, the number of deals began to increase. However, when their bandwidth reduced, so did their role in mentoring startup companies.
  • Increasing knowledge: With general partners becoming less knowledgeable than entrepreneurs as knowledge and technology advanced, they found it difficult to keep abreast of developments. The role of a “virtual” CEO was created during the 1990s as venture capitalists’ ability to assist portfolios became limited.
  • Increasing pressure on limited-partner relationships: Reporting requirements and regulatory scrutiny are much higher than they were two or three decades ago, resulting in more work and requiring increased commitment.

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/