Venture Capital Is Ripe for Disruption

The article argues that venture capital's focus on rare, very large outcomes is failing most investors and founders, and it sees an opening for funds aimed at smaller but more likely successes. It cites Figma's $20B acquisition: Index Ventures owned about 13%, worth roughly $2.6B, yet the author says that stake would not return Index's $3.1B fund, which was raised in 2021. The piece also says only 48 public tech companies are valued above $50B while close to 1,000 venture funds compete for such outcomes, and that Black entrepreneurs received 0.12% of venture dollars in Q3 of that year. It proposes funds of $150M or less that offer equity optionality, though it does not present this as tested.