I’ll admit, I didn’t really ever understand venture capitalists raison d’etre, opting instead to follow lampooning accounts like VC’s congratulating themselves. It seemed like something Roman, and obscure. The idle rich deciding what idea lived and which one died. Having been on the opposite end of the exchange for a long time, raising money always seemed like a puzzle box, mostly with low percentage chances to make my dreams and those of others fly.
Looking at it through the other side, as part of an intensive VC Lab program via Adeo Ressi’s Founder institute, I can now appreciate the complexity, work ethic dynamism of VC game. The Venture Capital ecosystem itself is self organizing. A system of accretion by a shared vision Private Equity, Limited Partner’s and Family Funds can find larger venture funds and deploy them to partnered studios and startups with a shared or common goal and philosophy.
In this way a self selection process and alignment happens between the people who have resources and the people who have the knowhow to create the new. This is very important mechanism for progress. As we know over the past several years, a large amount of capital was accumulated, a lot of people got rich, and many more people lost wealth. This size and scope of this gap requires a number of strategies and interventions. In a free market ethical investing is a core piece of addressing this.
According to the Mensarius Oath, part of the Founder Institute’s core philosophy of investing is steeped in moral and ethical backbone.
How refreshing to know that the people most empowered to infuse new companies with cash will be doing so with the benefit of humanity in their sights. Of course this will vary by person and what they believe in, wether its deep tech, biotech, agritech, consumer products, quantum computing, fusion power, space exploration, new cottage industries or any combination of the above, some serious deal flow is bound to happen and cascade new funding to fresh ideas that will alleviate current societal problems and more over the coming years.
In summation I now see the important work of private equity, family funds, limited partners and the greater venture capital world as an evolutionary force, selectively amplifying ideas that promise not just returns, but progress.
In the current landscape, the real task is to channel capital into ventures that will meaningfully improve our world. This is where the evolutionary aspect of VC comes into sharp relief—it's about nurturing the ideas that align with this vision.
As someone who looks to the horizon, I see our role as more than investors and and builders. We are stewards of potential, guiding the capital towards innovations that promise a better tomorrow. This isn't just investment or an invention; it's a commitment to the future we want to build.
In sharing this perspective, I invite the venture community to join me in this discerning journey. Let's channel resources with the foresight that the businesses we back today are not just profit centers, but the cornerstones of the world to come. 🕊 🔮 🕊