Michael Downing’s Post

Approximately half of the top-performing venture capital managers by vintage cohort since 2001 have been emerging manager funds (EMFs), defined as firms that have raised up to three funds. This data from Preqin, reported by the StepStone Group, aligns with their own findings from proprietary data – that smaller funds tend to outperform larger ones. What does this mean for LPs looking to invest in venture capital? Venture is no longer an ‘access class’ where long-time stalwarts drive all returns. Armed with agility, fresh perspectives and the ability to tap into early-stage opportunities, new EMF talent is generating Alpha, and more LPs are looking for ways to navigate the emerging manager ecosystem. At MDSV Capital, we are tapped into the emerging manager network in several ways - through LP commitments in EMF funds, co-investments in EMFs’ top-performing outliers and our curated online EMF community, The Promontory. Learn how we deploy our 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗠𝗮𝗻𝗮𝗴𝗲𝗿 𝗔𝗹𝗽𝗵𝗮 𝗮𝘁 𝗦𝗰𝗮𝗹𝗲 strategy in the MDSV Emerging Outliers Fund: https://lnkd.in/dtYu6sMv #VentureCapital #InvestInVC #EmergingManagers #EMFs

At MDSV Capital, we’re passionate advocates for including emerging manager funds (EMFs) in a venture investing strategy. Nice to see more data that supports this. #MDSVCapital #VentureInvesting #EMFs

Global private markets investment management firm StepStone Group recently closed the largest-ever Venture Capital Secondaries Fund. 💸 $3.3 billion for StepStone VC Secondaries Fund VI, L.P. ("VSF VI"), with oversubscribed commitments from existing and new limited partners. 💡 VSF VI seeks to provide liquidity to founders and early investors in mature venture-backed companies, purchase interests in venture capital funds from limited partners, and assist fund managers with structured solutions such as portfolio strip sales, tenders, and continuation funds. 🌍 Global 📈 Stepstone is responsible for $678B in total capital and is one of the largest and most active allocators to venture capital and growth equity in the world. The venture capital and growth team comprises of over 75 investment professionals, making them a significant force in the industry. The wider team of 990+ experts operate from across 27 offices worldwide. 💭 “Shareholders of venture-backed companies, limited partners, and fund managers are increasingly turning to the secondary market as a tool for interim liquidity. We are in a privileged position to help each of these parties achieve their goals through the solutions we offer.” - John Avirett, Partner at StepStone 🗞️Steptone https://lnkd.in/ea2zZCby 👏 For the #AudaciousInvestors unleashing innovation and empowering tomorrow🚀 John I Hunter I Phillip I Deric I Thomas I Anthony I Leyla I Dale I Andy I Huff I Greg I Stephen I Jennifer I Brian I Andrew I John I Jim I Vincent I Seyonne I Adair I C. Ashton I Lindsay I Hunter I Team Stepstone … #venturecapital #vc #funds #startups #entrepreneurs #funding #tech #usa #entrepreneurship #technology #innovation #secondaries #venture

  📣 Announcing the Launch of the new GoalVest Venture Growth Fund ! 📣 Fundraising is now open. GoalVest Advisory's new Venture Growth Fund is providing RIAs much-needed access to the Late Stage Venture Capital asset class, which has exhibited tremendous growth as companies are typically staying private longer. The GoalVest Venture Growth Fund features: ✅ Diversification: Tech exposure diversified beyond public markets ✅ Accessible minimums: with a minimum investment threshold of $250,000 the fund is accessible to a broader range of clients ✅ Shorter lock-up period:  unlike early-stage VC funds, GoalVest aims to provide clients with a shorter time to liquidity ✅ De-risked portfolio: the fund targets a diversified basket of mid-to-late stage venture-backed companies while seeking the potential for outsized returns relative to public equities The fund’s strategy will continue to follow GoalVest’s existing formula of using multi-channel deal sourcing to create a portfolio diversified across multiple thematic market trends in areas such as AI, SaaS, Climate Tech, Defense, Fintech, and Consumer.    For more information, read the full press release here: https://lnkd.in/ej5kzi9n   #venturecapital #privatemarkets #venturegrowth #alternatives #RIA

Is the venture capital industry on the brink of extinction? With increasing consolidation, homogeneity among emerging firms, and large allocators dominating the field, Rick Zullo argues that venture capital is at risk of losing its core essence. Zullo suggests that without greater cognitive diversity and innovative approaches, the industry could evolve into something more akin to asset management giants than the dynamic, contrarian space it once was. This thought-provoking read challenges the future of VC—can it adapt or face extinction? Read the full article here: [The Extinction of Venture Capital](https://bit.ly/4d7a42N)

Our new Pacific Channel Opportunities Fund is a venture capital continuation fund – a model very similar to funds launched by major US firms, including Lightspeed Venture Partners, General Catalyst and New Enterprise Associates, amongst others. Over the past few weeks, Investment Banking partner Richard Pinfold has been engaging with prospective investors. Here are some of his key insights from those conversations: “Even with the 'newness factor' associated with the Opportunities Fund, the type of questions I’m getting reflects a genuine level of interest about the opportunity to invest in a portfolio of eight credible deep tech companies. Three common questions keep surfacing in our discussions: 1️⃣ Why create a continuation fund in Australasia now? While venture capital funds typically operate on a 10-year timeline, we've seen some of our strongest portfolio companies benefit from the additional runway this fund structure provides. Fund I's realized IRR of 101% demonstrates our ability to identify and grow successful companies. Morgan Stanley research validates this continuation fund approach, which we're now leading in Australasia. 2️⃣ What makes these eight companies unique? These early-stage companies have an average of seven years in operation and span healthcare, clean technology, agricultural technology, and horticulture. With an average unrealized IRR of over 65%, they've proven their business models and shown remarkable growth potential. Our 20% target IRR for the Opportunities Fund reflects our confidence in their continued commercialisation journey. 3️⃣ What gives you confidence in future value creation? We've worked closely with these companies for several years and have really good insight into their growth potential. Each has reached significant commercial milestones and has developed clear paths to market in their respective sectors. We see an opportunity to continue our involvement to help accelerate their next phase of growth through strategic support and our extensive industry networks." I’m excited about the true potential of this structure to bridge the gap between company growth needs and investor expectations. It's a testament to how our venture ecosystem is evolving to support companies through their full growth journey.   Interested in learning more about Pacific Channel’s Opportunities Fund? Feel free to message us or visit Syndex New Zealand for more information. https://lnkd.in/g-BzCFPs #venturecapital Thomas Powell Brent S. Ogilvie

The venture capital industry now faces a sustained fundraising slump. With global venture firms securing just $30.4bn in the first quarter of 2023, it’s clear that a significant challenge lies ahead. While multiple factors have contributed to this downturn, I argue that the exit market stands out as the most pressing one.

Venture capital can be optimized for happiness, according to an insightful article on Stanford Social Innovation Review. The Happiness Return Framework, developed by SVT Group and Happiness Capital | Certified B Corp, assesses investments based on their impact on stakeholders' well-being. Explore how this innovative model seeks to create value for all parties involved in venture capital investments. https://lnkd.in/dxXcmdTu #Venture #VentureCapital #VC

🚀 Dive into the venture capital world with our latest blog: "Your Ultimate Guide to the Most Successful Venture Capital Firms"! Discover the top players, their strategies, and how they drive innovation. 💼💡 https://lnkd.in/d86S3f_d #VentureCapital #StartupSuccess #Investment #BusinessBlog

Venture Capitalists must use decisive investment criteria when they evaluate deal flow to determine which opportunities to pursue. Making swift go/no-go decisions allows VCs to allocate more time to the most promising prospects. In this post and the companion webinar, I describe the top criteria experienced VCs use to screen deal flow: ▶️ Alignment with their investment strategy ▶️ The Founding team’s fit with the execution challenges ▶️ The market’s size and opportunity. This guide helps Venture Capital Investors sharpen their decision-making process, streamline deal flow evaluation, and optimize their investment choices. It also allows fundraising Founders to better assess their odds of getting funded. 💡 Follow The VC Factory for expert VC content. 📬 Subscribe to the newsletter for a weekly digest on Venture Capital: https://lnkd.in/gbXQ9BkV https://lnkd.in/eN7_WMG3