What hedge funds should know before venturing into VC with Maverick Ventures’ Matt Kinsella

We’ve highlighted before that private companies are raising larger amounts of capital and waiting longer than ever before to go public. As a result, the rate of crossover investments—when firms that traditionally focused on PE expand into VC investments—has increased precipitously.

Research shows that hedge funds, mutual funds, PE firms and corporate venture capital firms across the US have been on a VC spending spree in 2021. These firms and other nontraditional investors have participated in $184.7 billion worth of venture deals through Q3 2021 according to PitchBook’s US VC Valuations report. That giant figure is already nearly $60 billion higher than 2020’s total.

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