How Venture Capitalists are Adapting to the New Reality

While fintech firms have helped to change the shape of financial services over the last decade venture capital has largely stayed the same; Alex Lazarow of Cathay Innovation writes in Forbes that he sees three areas that venture firms can change; revisit existing products with new business Models, and create new products to upend the traditional venture fund model; automate decisioning and flatten access to capital; Lazarow references Social Capital’s “capital as a service” algorithms which have removed bias from their decisions and results show that 80 percent of founders were nonwhite and 30 percent women; target the underserved and focus on impact, only 0.7 percent of venture capital goes to the entire Midwest; funds need to do a better job at focusing on the innovation that resides outside the coasts and in the middle of the country because innovation does not have borders. Forbes

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