The Effect of the Mega-Fund

Recently, an article was ran in Fortune magazine concerning how VC mega-funds are widening the funding gap (Link: http://fortune.com/2018/03/22/venture-capital-fun…). Firms such as Sequoia Capital, Battery Ventures and more are raising millions of dollars and expanding their funds exponentially. As firms such as the aforementioned expand their funds greatly, I am intrigued to see how this might affect early-stage startups acquiring funding and smaller VC firms trying to fund talented startups.

The mega-fund is already beginning to affect smaller firms. For example, Patricia Nackache, a general partner at Trinity Ventures states, "It’s really altering the structure of venture pretty fundamentally. I feel like over the past three years, the venture environment had bifurcated into this world of “haves” and “have nots” where there are some companies that have struggled to raise money and some companies that have been able to raise gobs of money. ". What is everyone's thoughts on this? What are any other trends you see that may play a role as well?

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