The Rise of High-Touch VCs

Hi FINTECHTALKERS,

I sat down with Garnet Heraman Co-founder and Managing Partner at Aperture Venture Capital, and Dave Anderson Founding General Partner at Beat Ventures to talk about the rise of emerging managers and how they differentiate in an increasing crowded venture capitalist space.

Garnet and Dave represent a dynamic new breed of emerging managers, bringing a personalized, niche, and highly flexible approach to founders in the venture ecosystem. Unlike many established Silicon Valley VC firms, they’re not bogged down by the groupthink that has contributed to the persistent disparities in capital access and leaving money on the table due to inherent biases—something I’ve discussed in previous posts (see here).

Is early stage venture capital not only biased but also a glorified lottery ticket selection?

By breaking away from traditional models, Garnet and Dave are redefining what it means to support early-stage companies, offering founders a more tailored and hands-on partnership that prioritizes innovation and inclusivity.

The benefits to founders working with emerging managers are numerous. Much like a small business gains from the personalized service of a community bank, founders experience a stronger, more meaningful connection with their investors—far beyond just being a line item in a portfolio. Emerging managers often bring valuable operational support, leveraging their deep expertise in both technology and business to help early-stage companies grow. They tend to be more agile, willing to take on greater risks at the earliest stages, and are more likely to innovate in structuring deals, engaging with founders, and building their firm's brand.

The challenge for emerging managers, however, lies in overcoming perceptions around their lack of scale, brand recognition, network access, and ability to offer value-added services. Larger firms often have the advantage when it comes to influencing exits, thanks to their deep relationships and established LP networks. To address this, iValley is exploring the creation of an ecosystem to unite emerging managers—called iValley Venture Catalyst. This initiative is an extension of our existing ecosystem, bringing together multi-stage VCs, startups, and corporates. If you're interested in learning more, feel free to reach out!

Institutional LPs and founders alike should take notice and connect with Garnet and Dave, as well as other emerging managers like them.

Enjoy and always be in the know,

Paddy Ramanathan

Follow me on the new Twitter (X) @PaddyRamanathan
Founder of iValley (www.ivalley.co) and
Host of the FINTECHTALK™ Show (on Substack, Apple Podcast, YouTube, and Spotify)

Thanks to chatgpt for suggestions.

Dave attributes the “VCs do no harm” quote to his former boss Jim Adler Founder and GP at Toyota Ventures. 

(Violin piece in podcast, courtesy of my daughter Ilina)

Links to other FINTECHTALKs on the changing landscape of Venture capital

True Global Ventures - the global venture capital firm with a hyperlocal presence

The real reasons for the collapse of SVB (and potentially the prominence of S.F Bay area) and and the rise of the global digital bank for startups