TLDR:
- R136 Ventures focuses on mid- to late-stage investments in sectors like fintech and AI.
- Challenges facing mid-late-stage startups include funding, scaling operations, and talent acquisition.
A conversation with Victor Orlovski, the Managing Partner at R136 Ventures, highlighted the current state of the mid-later stage venture market. The firm, based in Silicon Valley, manages three venture capital funds focusing on sectors such as fintech, artificial intelligence, B2B marketplaces, cloud, data analytics, and workflow automation. Orlovski discussed the challenges facing mid-late-stage startups, including securing funding, scaling operations efficiently, and competition for top talent.
Mid- to late-stage startups have been impacted by economic uncertainties and tighter venture capital markets, leading to challenges in strategic financial planning and maintaining quality while scaling operations. The sudden cash crisis in 2022 heavily affected mid- to late-stage companies that were relying on unsustainable growth strategies. Competition for top talent and market share has intensified, making it challenging for startups to differentiate themselves.
Orlovski emphasized the importance of good VCs in providing support and expertise in scaling businesses, marketing, and sales team building. R136 Ventures has adapted its due diligence approach to include evaluating over 250 data points, with a focus on the historical performance of mid- and growth-stage companies. The firm uses AI tools for deep tech due diligence and assesses startups’ engagement with generative AI technologies.
In addressing the recent pullback in VC fundraising, Orlovski highlighted the benefits of mid- to late-stage investing, where companies offer greater stability, reliability in financials and business models, and potential liquidity events like IPOs and acquisitions. Investing in mid- to late-stage tech companies during uncertain times can provide a compelling mix of reduced risk and strong return potential for LPs, making it an attractive option in the current market landscape.
