The Ultimate Guide to Venture Capital Explained by a VC

Venture capital has funded more than half of all US public companies since 1979. Despite having an outsized public presence, VC has historically has been an opaque boutique industry run by only a few hundred venture firms heavily concentrated in Silicon Valley. In this video, I'll demystify venture capital from inside Silicon Valley, including how venture capital differs from private equity and angel investing, the various stages of venture capital across early and late stages, how venture funds make money, roles within venture firms, how venture capital has changed in the past few years, and fundamentally what VC funds need to excel at to be competitive in 2021.

0:00 Introduction
1:25 Venture Capital vs Private Equity
2:15 The Stages of Venture Capital: Early Stage and Growth
5:46 How Venture Capital Firms Make Money
7:50 What does a VC Do?
10:41 Venture Capital Roles

[nogatekeepers]

The ground has shifted beneath the feet of the venture capital industry. Both the size of startup exits and the amount of venture capital has grown 10x, and as a result, the industry has become institutionalized with more ex-bankers and consultants entering the industry, more fragmented and specialized in certain verticals (e.g. crypto, life sciences) and stages (e.g. pre-seed vs seed vs post seed vs series A focused funds). It's also become increasingly sharp elbowed and competitive since big funds are looking to deploy more capital and take more ownership, such that traditionally you saw a lot of collaboration in the VC industry. Let me know if you'd like me to make a video on this and other changes on the VC industry, or any other venture related topic! I'm planning on posting a video soon deep diving into how VCs find the next Google or Facebook, and how the pick these deals in the early stages.

[WaleraSchildhauer]

I think it's important to stick to stocks that are immune to economic policies. AI stocks that have the potential to power and transform future technologies. It seems AI is the trajectory most companies are taking, including even established FAANG companies. Maybe there are other recommendations?

[w.i.thenewit]

Love the in depth breakdown! think this is the best one on YouTube on demystifying venture capital

[freaketonft]

Golden! Thank you, it brought clarity and motivated me now that we are launching our Seed Round with mowies

[PREPLAY]

Ahhh so few views and likes! Wayne, this was an excellent video! Really.

[jonathanyu]

What a wonderful briefing. It clears most of the mist I have. Thanks so much.

[meetsatose]

Such a great content. We as an Entrepreneur often a times have a clear goal of raising capital but at times forget or lack empathy towards VC's business model as well.

Amazing man, Keep up the good work.

[adithir]

really great video! loved the breakdown of topics and explanations!

[tonywagler]

One of the best overall breakdowns I’ve seen

[alexander]

Thank you so much for this great content! The best channel on YouTube about VC and fundraising! ❤️ Keep it up, Wayne! 💪🏼

[clashclips]

I love your videos mate, you are doing a great job...

[unknownuser]

how much percentage of the vc's entire fund will go to reserves for follow-on investments for eg: if a vc raises a 100 million dollar fund from the limited partners, how much of the 100 million dollars will go to reserves for follow on investments?

[unknownuser]

i have a question about venture capital. You dont get super hot companies giving 50X return everyday so what do your employees like associates, analysts, junior partners, senior partners in your vc firm do all day?

[shermanmcdermott]

First and for most great video very informative, but secondly, you mentioned "unfair advantages" would a patent on a technology be considered an unfair advantage by a VC, or is this more to do with networking connections and corporate support? Thanks for making such insightful and relevant videos.

[Investor-rw]

Pls STOP the background music completely. Its simply annoying. Your content is good enough to not need any gimmicky distraction.

[wryltxw]

The thing that bothers me is how big VC uses their size to force anti competitive practices that benefits them. Just like big anything.

[jackymarcel]

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