With one exception, all of Palico’s ten most popular venture capital fundraisings over the past three months are from ‘emerging managers,’ general partners seeking capital for either their first or second fund.
The only top ten investable fundraising not from an emerging manager, Fifth-ranked 500 Startups IV, qualifies instead as a ‘next generation’ opportunity, or one that breaks meaningfully from the classic VC template. Arguably, Palico’s two greatest strengths are its ability to help investors connect with emerging managers and its ability to help investors discover and invest in new, or next generation, investment strategies.
|Everything is ‘Next Generation’|
Actually, all of Palico’s top ten venture capital fundraisings can be considered next generation, since they all focus on new strategies and new geographies – sometimes on both at once. For example, 500 Startups IV is based out of Silicon Valley in Northern California, VC’s traditional stomping grounds, but its investment focus is definitely global. It also represents a breed of VC investment vehicle that’s only blossomed in the past five years, seed accelerators. In an entrepreneur’s runup to a first formal investment pitch, seed accelerators offer mentorship and several months of boot camp-like training in all aspects of running a startup. In exchange, seed accelerators get equity in the entrepreneur’s business.
|Supporting Networks are an Increasingly Effective Calling Card for Fundraising|
In addition to 500 Startups, two more of the top ten investable VC fundraisings in Palico’s marketplace boast relatively new types of infrastructure that can give them an edge when either sourcing or securing attractive investments. First-ranked Seed Equity Venture Fund is affiliated with similarly named Seed Equity Ventures – an online VC investment banking platform – from which it plans to cherry pick high quality investment ideas. Meanwhile, sixth-ranked CapHorn II expects to secure deals with top startups by offering the companies a counseling network of over 100 associated entrepreneurs and family offices.
|From Local to International|
CapHorn II is also one of five fundraisings among the top ten that aim to invest in firms from niche national markets and expand them internationally. This is the aim of third-ranked GreenSoil II Agro and Food in Israel, fourth-ranked Barn Investments II in Brazil, seventh-ranked Ictineo Banking & FinTech in Mexico, and tenth-ranked Malaysia Venture Fund. These fundraisings are all examples of new international diversity in the venture capital ecosystem, relegated for many decades to Silicon Valley and the U.S.
|Focusing on Niche Sectors|
In another departure with tradition, most of the top ten fundraisings on Palico are focused on investment in very specific industrial sectors, or provide highly specialized services. Second-ranked KIC Ventures has expertise investing at the crossroads of healthcare and technology, while ninth-ranked Bullish Partners Brand Fund plans to win investments in startups in exchange for its team’s extensive brand building services and experience.
|The Full Range of Private Equity at Your Fingertips|
Private equity today embraces a much broader range of investment strategies and regions than it did just five years ago. Mainstream or more specialized fundraisings, in venture capital or any other subset of private equity – anywhere in the world – are easy to find using Palico’s online marketplace. Palico’s listings of investable private equity vehicles make transacting simpler for both limited partners and general partners.