Currently, as part of my firm, Wolfteam Ltd.'s efforts to raise capital for startups, I gather from many venture capital contacts, technology startup founders, investment bankers, strategy advisers, government officials that venture capital funds now look almost exclusively for net profit earning technology startups in which to invest.
But, I beg your pardon, does not the aforementioned development nullify venture capital funds' existence hypothesis, at all? If I may ask?
Aren't venture capital funds conceived so they can provide a sort of bridge financing for currently loss making small, young technology firms, which built an innovative service, product, hardware with which to disrupt established industries, increase competition and enhance humanity's well being.
A possible answer would be, that angel investors are more suitable for that phase of a startup's life. But there are so many startups, some of them not young any more and quite big mid-sized firms, which are still loss making. And many of them do have excellent products, with huge potential.
So, basically seed and Series A investing is now a huge niche as many of its most recent tenants, venture capital firms have left early stage technology startups investing.
In short, seed and Series A investing is a significant business opportunity currently, according to Wolfteam Ltd.
http://wolfteamedge.com/
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