Venture firms are increasingly turning their attention to their own portfolios and culling out the weaker companies and preserving their remaining capital for the strongest of their investments. In an economic environment we are experiencing presently, it makes sense the strong will survive and the weak fall by the wayside. Now, more than ever, their own portfolio is competing against itself.
Is this premise valid however? There is no certainty that even though capital deployed to the best and the brightest will ensure that these companies will succeed when things turn around. What of the companies that get overlooked by one firm but are right in the investment crosshairs of someone else? The trite saying, “One man’s trash is another man’s treasure” may never be as poignant as now.
What if a firm gets dropped, or capital is severely restrained? Banks? They’re hoarding cash instead of lending and supporting business growth. Next rounds? Who might that be? The ubiquitous chase to the next capital source is on. Many firms will now be seeking money for virtual survival in the most unlikely of places. There are over 700 venture firms in the U.S. that are constantly looking for the “next best” deal. How to access them when timing is urgent?
What if there was a deal repository where companies can seek to match their capital needs to a source that understands the nature of the business and has the capital to invest? What of a community where investors can pool ideas, syndicate their own deals, getting capital to work faster and more efficiently towards the best companies that match their criteria? The answer is the Capital MatchPoint, where business and capital meet.
The pressure is on: survival of the fittest, deal aggregation, capital deployment and efficiencies to automate the process in a secure environment. Many deals, many investors…are you ready for the new paradigm in commerce?
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