Our Approach to Early Stage VC – Invest with Small Funds
Industry Ventures invests in smaller venture capital funds less than $250 million in size. Our team invests using a combination of primary commitments, early secondaries which are less than 50% funded and direct co-investments in the best growth-stage companies. We offer institutional investors and their consultants a systematic, multi-year, diversified venture capital program with the opportunity for a high investment multiple.
Smaller funds have outperformed historically and still offer the strongest return potential as $100 million M&A exits dominate rather than $1 billion IPOs. Small funds have outperformed over the past 15 years and continue to offer the strongest return potential as $100 million M&A exits occur significantly more frequently than $1 billion IPOs. Venture capital fundraising has declined by more than 80% from 2000 levels, which we believes sets the stage for a strong rebound over the next decade as the surviving firms will face less competition and drive better investment terms at lower valuations.