In a recent episode of TechCrunch's StrictlyVC Download podcast, Adeo Ressi, founder of Decile Group, and Sarah Lacy, a former TechCrunch journalist turned entrepreneur, challenged the prevailing narrative that emerging venture capital managers are facing a shrinking landscape.
Hosted by TechCrunch Editor-in-Chief Connie Loizos and StrictlyVC’s Alex Gove, the discussion highlighted how Ressi’s latest initiative, VC Lab, has quietly empowered over 800 venture funds worldwide, each averaging $12 million in assets under management.
The Rise of Emerging Managers in Venture Capital
This significant achievement by VC Lab underscores a counter-narrative that emerging managers are not only surviving but thriving in today’s competitive market.
Historically, the venture capital industry has been dominated by established firms, often leaving little room for new entrants who lack the track record or network to secure substantial funding.
Breaking Barriers with Innovative Platforms
Ressi’s platform, VC Lab, has disrupted this dynamic by providing aspiring fund managers with the tools, mentorship, and resources needed to launch and scale their funds effectively.
The impact of such initiatives is profound, democratizing access to venture capital and fostering a more diverse ecosystem of investors who can back innovative startups across the globe.
A Historical Perspective on VC Challenges
Looking back, the venture capital sector faced similar skepticism in the early 2000s when angel investing began to rise, with many doubting the sustainability of smaller, less conventional investment models.
Yet, as Ressi and Lacy pointed out, the resilience of new players—often driven by adaptability and niche focus—has repeatedly proven critics wrong, as seen with the success of angel investors over the past two decades.
Future Implications for the Startup Ecosystem
Looking ahead, the success of programs like VC Lab could signal a shift in how venture capital operates, potentially leading to a future where emerging managers play a central role in funding the next generation of tech unicorns.
The broader startup ecosystem stands to benefit immensely, as increased competition among fund managers may drive more favorable terms for entrepreneurs and spur innovation in underrepresented sectors.
However, challenges remain, including the need for sustained investor confidence and regulatory support to ensure that these smaller funds can weather economic downturns.
As Ressi and Lacy emphasized, dismissing the potential of emerging managers is not just shortsighted—it ignores the transformative power of new perspectives in a field that thrives on disruption.
Alfred Lee
