The new VC model

Read an interesting article in BusinessWeek http://tinyurl.com/q4dxev about the changing VC model which is very much how we are thinking about the world at Baroda Ventures…but when news like this hits the mainstream press, I wonder at what point we are already behind the curve vs on the cusp of something new. I think First Round Capital laid the groundwork several years ago for what is now considered the “new VC model”. The economic downturn only exacerbated this because funds which normally wouldn’t have moved downstream from Series A to Seed investing are now being forced to because they weren’t able raise enough money and justify it as an intentional strategy. If there is strong growth in Seed investing now, will there be a rash of companies that all need a larger Series A investments to continue causing a big fallout down the line?

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