Are We Entering A New Age Of Venture Capital?

The wind of change is blowing across Venture Capital. Not confined to a specific market or geography, the relationship between VCs and the companies they invest in has shifted culturally and economically. There is a sense that models are in need of a change to safeguard otherwise resilient sectors such as tech from the fated'bubble' scenario that many sceptics see on the horizon, and with this, the deal structures and ultimately ROI is also changing. With a series of disappointing, or worse still, failed tech IPOs hitting the market over the past year, a rather grey cloud is beginning to shadow the world of start-up financing. You needn't look far to see how even the biggest names in the market have got it wrong; Uber, Lyft, WeWork, Slack, and Spotify are all trading way off their initial listings – which for their venture backers isn't boding well for forecasted targeted IRR.