So, you want to Democratize Venture Capital

So, you want to Democratize Venture Capital

An enterprising capitalist once made it clear to me that whenever you see the word “democratization” in the elements of technology marketing, think of it as a red flag. Democracy, as it is commonly called, often comes with an ironic caution: it benefits white and male participants relatively uncommonly.

Now, you know enough about me that I wouldn’t usually start this daring work of any acquaintance with your Saturday but I think the reality is that launching a new tool so led by technology entrepreneurs Lolita and Josh Taub is actually something innovative. Taubs GP-LP, or General Partner and Limited Partner, has introduced matching tools to help the presented fund managers gain access to the capital needed to start their fund. The match-making tool connects with Fundraising (GP) Investigators (LPs). The move comes from the heels of matching tools from their founder-investors, who have made more than 1,000 acquaintances to date with what they say are 27 checks worth about $4 million in total capital. 

Yes, matching LPs with GPs is a relatively simple technology and concept. And it is a relatively simple test; however, it must not have existed five years ago and 10 years ago. Zoom Investments has changed the way people meet and veterinarians and I think a GP-LP tool is a key data point on how emerging fund managers can bring alternatives to their fundraising methods. Fundraising:

  • Vise CEO Samir Vasavada and Sequoia’s Shaun Maguire break down the art of the pitch
  • When to walk away from a VC who wants to invest in your startup
  • Dismantling the myths around raising your first check

The clear focus of this tool is only to help the people presented – which it defines as someone who doesn’t fit the classic Silicon Valley mold like women, LGBTQ + folks, ivy grades (or non-elite employers) and the rich – A layer that separates it from many other tools.

Products like the AngelList Rolling Fund are great, but universal, ongoing fundraising still has the privilege of first-hand access for those who already have a network – just take a quick scroll to see who has it so far. Let me make it like this: We’ve reached a stage of initiative where there are plenty of tools out there to help founders and investors oversee their community. What is missing, however, are tools that help the community have less, underworked and undervalued opportunities.