Fred Haney, A fifty-plus year Veteran VC, Credits a Consistent and Proven Select Few, Top-Tier VC Firms As Major Players.
No exits, No IPO, No problem
— Fred Haney
TORRANCE, CA, UNITED STATES, December 1, 2022 /EINPresswire.com/ — Fred Haney, a veteran company builder, Author of Amazon’s #1 best-selling business book, The Fundable Startup, and the brand behind fredhaney.com, assures startups that funding capital will remain relatively stable in supply amid recession fears. Fred maintains an evergreen outlook on the small, predictable, source of capital supply for startup funding that hardly fluctuates. Having been a major player himself with the creation and management of Venture Capital firm, 3i Ventures, California, Fred shares his insight on top-tier Venture Capital funds, including Sequoia.
Unlike Wall Street’s IPO market, established top-tier venture capital partnerships that have “deep pockets” are also able to maintain their ownership position in portfolio companies during market downturns. Aside from being able to weather all economic conditions and continue investing in startups, their source of capital supply is reliable and relatively stable unlike the stock market. Startups should not assume that startup capital disappears when the stock market tanks.
All Venture Capital funds are not the same. There is an enormous difference between the top-tier venture capital funds and the bottom-tier venture capital funds. Top-tier VC firms’ individual “funds” usually comprise $500 Million – $1Billion or more. These select few know how to build companies, as most of these general partners have experience as CEOs of corporations. They know what it takes to build successful companies, and they have an extensive network of resources to help take startups public or get them acquired. By contrast, smaller VC funds that manage capital, have existed for less than less than 10 years, or have had few exits are not in the same league.
In times of poor liquidity, the larger, more established Venture Capital funds have enough capital to continue investing in their portfolio companies, while smaller funds often run out of capital quickly, not having deep enough pockets to sustain their companies or enough exits to raise additional funding. In times of illiquidity the stock market is often depressed, making acquisition less likely by companies with depressed stock prices.
Do not underestimate the value that a top-tier venture capital fund, or a top-tier venture capital veteran expert (like Fred Haney) can bring to your company. If you are an entrepreneur looking for stable and reliable funding options, the best preparation for funding your idea is to have a good story, solve a significant problem, and prove that you can disrupt the market.
Fredhaney.com is a brand by Fred Haney, a 50+ year Venture Capital veteran. Fred Haney is an accomplished Author, Company Builder and veteran Venture Capital fund manager. His website fredhaney.com and brand continues its mission to seek out startups who need Venture Capital funding.