Will The Leading Edge Of VC Combine Private-Equity And Unicorn-Entrepreneurship?

The venture capital (VC) industry takes high risks for high returns. Now, a new type of VC fund, Juxtapose, expects to earn high returns like VCs but take low risks like private-equity (PE) funds. Is this possible?

Timing of the investment. VCs invest after Aha. They wait for evidence of home-run potential in the opportunity, the strategy, or the leadership. If they see potential in the opportunity or strategy but not in the leadership, VCs replace the leader. Juxtapose expects to invest at the idea stage. Definitely not lower risk.

Unicorn opportunities. VCs invest in emerging industries or emerging trends. Nearly every one of the unicorn-entrepreneurs (UE) built their ventures in emerging or fragmented industries by developing dominant companies – examples include Fastenal and Waste Management. Juxtapose seems to be following the same strategy as UEs.

Venture risk. Most investors and analysts think of risk…