He has operational experience. There has been a lot of buzz over the past few years as venture capitalists complete their resume studies as they seek to differentiate themselves from other sources of startup capital. Now, it looks like we’re seeing the continued evolution of that trend.
This year has seen a wave of startup consulting firms looking to raise their own venture capital to take stakes in companies they work with or align with. In theory, this makes total sense because both consultants and venture capitalists have one goal at the end of the day: helping companies grow.
“Most come on board because we provide the capital. What’s that plus? The benefit with us is storytelling.” FNDR CEO James Vincent
But why are so many consultant-led venture capital funds starting now? In addition to being one of the most difficult times for budding managers and first-time fundraisers, it’s a particularly difficult time for the broader venture market and economy as a whole. It is important to note that all these funds are raising capital outside of the balance sheet as opposed to investing.
For one thing, the startups they were already working with were asking to do it for them.