Pitchbook defines the “non-traditional” segment as comprising any investor not from a traditional VC fund, including VC arms of corporations, sovereign wealth funds, limited partners (LPs), investment banks, and others. Their research attributes the shift in new participants to the ever-longer venture lifecycle, allowing well-capitalized non-traditional investors to access opportunities out of reach to most traditional funds, due to fund-size constraints.
“A key opportunity for US VC and startups will be if the new Biden Administration and Congress enact key policies crucial to the startup ecosystem as they pursue the president’s Build Back Better agenda. Investments into infrastructure, climate, and research and development have the potential to help spur new company formation, if implemented correctly. NVCA will continue to work hard to engage Capitol Hill on key areas of upcoming policy proposals that could benefit the venture industry.”