Is there an alternative to the current VC model?

As the traditional Venture Capital model falters, with both the GPs and LPs questioning if this is worth their time, maybe it is time to think if we can do this differently

A couple of seemingly unconnected trends can point us towards a format:

1. Emergence of angels/ Limited Partners who are keen to evaluate each investment opportunity separately
2. Technology platforms showcasing possible investment opportunities to investors, reaching out to a larger group through the platform. These entities aim to not just showcase projects but also provide in-depth benchmarking and analytics for informed investment decisions
3. The increasing blurring of responsibilities between an investment bank, whose responsibility used to end once the deal is done, and the venture capital fund who gets the carriage fees only on successful exits in its portfolio

Lets look at a new entity that enables investors to take individual calls on each investment, instead of pledging to a common fund, combining several roles currently played by different entities

How will the revenue and fee work for this combined entity?

Key to this model will be building of a strong technology platform that will allow disintermediation of these roles and also allow the new entity to engage with all stakeholders: owners, investors and eco-system players on a continued basis

We already see the emergence of several angel investment platforms in various classes of assets as a precursor towards this new entity. While all players are trying to figure the various aspects of the business, I see most of them morphing into some format of the new entity I mentioned above