I was glad to be a fly on the wall during the National Venture Capital Association’s (NVCA’s) important and informative introduction to venture capital (VC) for US congressional staffers. Featuring Les Alexander, Endowed Professor and Professor of Practice, UVA Darden School of Business, and Partner, Jefferson Capital Partners, and Shiloh Tillemann-Dick, Research Director for the NVCA, this event provided an overview of the VC ecosystem and its importance to the US entrepreneurial ecosystem. The presentation targeted the congressional staff, industry executives, policymakers, and other stakeholders who are instrumental in facilitating access to the entrepreneurial ecosystem.
As a VC professional with experience on both sides of the fund management equation, having represented both general and limited partners, this was a great opportunity to gain insight into how best to educate policymakers on the role of emerging fund managers and their support of the start-ups which are responsible for driving the economy.
For example, did you know that, according to the NVCA, the median size of a VC fund in 2023 was just $35.4M US? This is a far cry from the billions in assets under management (AUM) by household names like Andreesen Horowitz, BlackRock, and Sequoia, etc. Yet, it is these small funds which are the most active, providing much-needed capital to entrepreneurs at the earliest stages of investment.
Not to mention the funds and startups led by members of underrepresented and underserved communities. Just think of the impact which could be made if they had access to the same amounts of capital as the historical VC market leaders. Policymakers are essential in smoothing the regulatory landscape to promote the growth of a much more equitable investment ecosystem, which provides value and prosperity for all.
As I always say, a rising tide lifts all boats. Now more than ever, it’s time for policymakers to get on board and help to right the ship.