Exact(32)
Established venture capitalists, however, say the new crop of capital-efficient start-ups represents an opportunity, not a problem.
One way his firm is addressing that is by bringing in other, more established venture capitalists to lead a deal.
Meanwhile, established venture capital firms like Greylock Partners and Kleiner Perkins Caufield & Byers are following the trend by starting seed investment funds within their firms.
In recent months, other more established venture capital firms have begun working with old economy financial buyers, like Evercore, who make their money by taking stakes in companies they help run.
Some Fortune 500 behemoths established venture arms in the 1970's and 1980's, while giants of the new economy, like Intel and Lucent Technologies, have poured hundreds of millions of dollars into their own venture capital units.
Several board members eventually left, and several established venture capitalists who had been interested in leading rounds of financing refused to do so because the founders insisted on pursuing multiple markets, Mr. Wolfson said.
Similar(28)
Most consulting firms, Mr. Zimmerman added, lack the experience that established venture-capital firms have in analyzing the quality of a start-up's management or the strengths and weaknesses of its competitors.
In February, the Sesame Workshop launched Sesame Ventures, a fund that will work with established venture-capital firms to invest in what the company refers to as "mission-aligned" education-technology startups.
They have formed support groups such as Indus Entrepreneurs, steered multinational contracts to India, established venture-capital funds and helped found business schools.But what has recently helped to change the mood is that the flow is no longer one way.
But Celery says its more established venture-backed customers average just 3%to7%7% organic traffic.
Only a few established, venture-backed startups have taken the ICO route, but as more do, the results of their token sales are likely to encourage other founders and CEO to follow them down the path.
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