Forbes: Get Bigger, Go Faster: How VCs Won By Tossing Out Their Rulebooks In 2021

January 1, 2022by SineWave Press

SineWave was featured in Forbes: “Get Bigger, Go Faster: How VCs Won By Tossing Out Their Rulebooks In 2021” by Rebecca Szkutak and Kenrick Cai

Mark Goldberg knows how much the venture capital market has changed in recent years. A partner at Index Ventures, Goldberg remembers the days when investors would meet up on Monday mornings to sip cappuccinos, pore over pitch decks and dig into due diligence. But in today’s record-breaking market, things look a little different. At his firm, lengthy investor meetings have been replaced with blocked calendar slots in case a partner has to sign a last-minute term sheet quickly. “The whole way that we have organized has changed to adapt to the market, ” Goldberg says. “Now capital is on demand. You can get a round done in 24 hours from a traditional VC fund and a host of new entrants.”

The due diligence process for a potential startup investment is extensive and entails gathering market data, rifling through documents of financial data and getting to know a company’s founders and customers through interviews. This exercise used to take months on average, but in today’s market, venture capitalists have a week or two for the process — if they are lucky. Most are left to cram months of diligence into a weekend or in some cases, a single day. VCs have adapted streamlined strategies built on efficiency — all while attempting to avoid sacrificing quality.

Read the full article here.

Accessibility Settings
Contrast
Bigger Text