Bonus episode: Venture capital indexation and how to grow the industry without growing valuations | Richard Blakesley of Venture Cubed

Assessing companies for venture capital investment is often more of an art than a science. As Founder and CEO of Venture Cubed, Richard Blakesley is building a rating system for venture capital that aims to objectively assess how investible new companies are. We asked him to talk about how Venture Cubed built the rating system, what it tells us about the venture industry and how it might change it going forward.

This is the second part of our excellent discussion. In the previous episode, we spoke about Venture Cubed’s rating system and what matters when assessing companies for investment. In this part, we discuss scaling the UK venture capital industry, indexation and investing at scale. In particular, we talk about:

• The proportion of companies that should be getting investment;
• The challenge of getting more investment into different companies instead of boosting valuations;
• Whether support and investment should come from the same organisation;
• Creating an index for venture capital and benchmarking;
• How to make that index investible;
• Data and creating systems for intermediate valuations;
• Buying and selling a venture capital index;
• Different investment models that might be used;
• Why bigger funds would expect to outperform smaller funds.

As you can see, we covered a lot of ground. This is a really important discussion for the venture capital industry: there could be an opportunity for it to scale up dramatically in the near future, but how it does that really matters. This discussion may not produce all the answers, but at least it asks the questions. And don’t forget part one.

Please email [email protected] if you have any questions or comments on The EIS Navigator.

Never miss an episode – click here to subscribe to The EIS Navigator on most popular services. 

Listen now

Links

Richard’s email: [email protected]

View the British Business Bank venture capital reviews.

Disclaimer

Please note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments.  Your capital is at risk. Past performance is not a reliable indicator of future performance.  Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.