Index Differentiation

Index Differentiation is a Roam topic tag for the question of how venture firms set themselves apart when capital is abundant. Two saved tweets carry it. John Tough (June 2021) argues that “capital has never been more readily available” in start-ups, so the scarce investor resources are an operator mindset to help entrepreneurs navigate growth, and industry expertise and commercial relationships. Mario Gabriele (May 2021) asks which VC firms have “a real, differentiated ‘product’ to sell entrepreneurs”, given how many funds there are.

Both feed Capital Allocation and the neighbouring question of VC Differentiation: what a fund offers founders beyond the check.

Where this appears

• In Start-ups, Capital Has Never… (tweet)
• Which VC Firms Have a… (tweet)