Entrepreneurial

– Mark Suster is a former serial entrepreneur and a partner at Los Angeles-based venture capital firm GRP Partners. This article originally appeared on Suster’s blog “Both Sides of the Table”. The views expressed are his own. –

In this three-part series I will explore the ways that the venture capital industry has changed over the past five years that I would argue are a direct result of changes in the software industry, not the other way around. Specifically, Amazon has changed our entire industry in profound ways often not attributed strongly enough to them.

I believe the changes to the industry will be lasting rather than temporal change. Venture capital is in the process of its own creative destruction with new market entrants and new models of innovation at the precise moment that our industry itself is contracting.

I will argue that when the dust settles, although we will have fewer firms, each type will end up more focused on traditional stage segments that cater to the core competencies of that firm. The trend of funding anything from the first $25,000 to funding $50 million at a billion-plus valuation is unlikely to last as the skills and style to be effective at all stages are diverse enough to warrant focus.

I will argue that LPs who invest in VC funds will also need to adjust a bit as well.

CORRECTED: the Universal College Application was created by ApplicationsOnline LLC and not the NCAA as was previously stated.

With President Obama’s small business bill stalled in Congress, big business is trying to pick up the slack.

Six of America’s largest corporations – IBM, AT&T, Bank of America, Citigroup, Pfizer and UPS – have banded together to create a “one-stop shop” for small and mid-sized businesses looking to sell to them and take advantage of the nearly $150 billion awarded collectively in contracts each year.