Jun 2, 2020

Top 10 venture capital firms

Top 10
Leigh Manning
9 min
Top 10 Venture Capital Enterprises

Venture capital firms - the engine of transformation

Although developing a revolutionary idea, business or technology is the first step on an exciting journey, it can also be, in some ways, the easiest. Taking that idea and projecting it onto the world stage takes industry expertise, a network of established contacts and enough finance to develop the idea from seed funding to long-term growth. Helping visionary founders and CEOs achieve this complicated journey are venture capital firms: pools of talented experts with a passion for innovation and a talent for generating success stories.

With many taking an interest in cutting-edge fintech, tech and infrastructure software enterprises, these investment firms have their sights set squarely on the future and are passionate about bringing transformative ideas to the global market.

About FinTech magazine’s Top 10 picks…

For this list, FinTech has chosen to sort the 10 selected companies in order of assets under management (AUM) in USD, from lowest to highest.

All of the featured companies embody best-practice in the venture capital sphere: knowledgeable, supportive, forward-thinking and innovative. Demonstrating that investment can be as creative and diverse as any other sector, each entry has its own preferred clients, sectors and approaches for investment.

Executive takes on contemporary topics

Effective boardroom culture:

An easy to overlook aspect of business yet highly essential, particularly for a venture capital firm, solid working relationships between board members can reap significant benefits and project brand confidence at the highest level, which will, in turn, build trust among clients.

“I think that a lot of people have in their mind this outdated stereotype of the board member who sort of jets in, goes to dinner, maybe makes a few pithy comments at the meeting the next day, and then you don’t hear from them again for another quarter. I should say, that is definitely not the model at TCV. Our boards are really engaged.”

From TCV; Beth Knuppel, Principal of Portfolio Operations

Investing in the post-COVID-19 market:

There is hardly a business, market or global economy that will be left unaffected by the ongoing COVID-19 pandemic. Many companies are coming to the realisation that old ways of operating are over and that embracing the ‘new normal’ of work, life and play is the best course of action. As the economy begins to recover, it could be the technology and fintech sectors which end up the big winners.

“Since the Global Financial Crisis of 2008, fintech - financial technology - has turned into a massive industry and is changing all areas of payments, banking, and finance. Virtually every small business, even a farmer at a farmer’s market, accepts credit cards thanks to companies like Square. APIs (application programming interfaces) exist to provide real-time visibility into bank accounts, brokerage accounts, 401ks, loan balances, and anything else that touches currency.

“A very complex problem is reduced to several hundred lines of code, aided by tools that nearly every small merchant in the United States uses. None of this would have been possible in 2008, but the technology is there in 2020. We need to act quickly to make sure our small businesses make it to 2021.”

From Andreessen Horowitz; Alex Rampell, General Partner

The emergence of OSS investment

Now that cloud computing has revolutionised the concept of integrated data and the methods available for unlocking its value, some investors might be wondering what the next area for growth could be. Open-source software (OSS), with its increasing renown for being smarter, better, faster and cheaper than its closed-source equivalent, may give some indication of what venture capital firms should investigate.

“Often, it isn’t very easy for legacy technology companies to compete with open source projects because of their powerful communities, strong grass root adoptions, and a bottom-up approach to sales and marketing. OSS companies effectively leverage these strategies. Similar to the way Elastic leveraged OSS to go after Splunk, I believe we will see many more traditional software companies challenged by open source projects.”

From Bessemer Venture Partners; Amit Karp, Partner

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