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

30 Jan 2024 / Podcast Tax Enhanced
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.

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Links

Richard’s email: [email protected]

View the British Business Bank venture capital reviews.