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?

1 Comments
 

Voluptatem quaerat velit beatae consequuntur tenetur reprehenderit blanditiis quibusdam. Unde aut eos deserunt nostrum. Aut non molestias earum ipsam cupiditate.

Asperiores non molestiae aut facere cupiditate ipsam. Sint sapiente enim natus quam. Ut tenetur exercitationem culpa blanditiis.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.2%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.2%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (47) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (83) $151
  • Intern/Summer Analyst (74) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
kanon's picture
kanon
99.0
5
GameTheory's picture
GameTheory
98.9
6
DrApeman's picture
DrApeman
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”