It used to feel like as soon as you left California and went east, your investment terms gradually got worse from New York to London to Europe. These investors wanted to see more revenue and startup investments heavily derisked in order to understand and evaluate them. Often in the last decade, you could try to raise funding as a startup founder anywhere else and run into risk-averse investors who were yet to understand the open-eyed model of venture capital. That's where the majority of risk-taking VCs were, after all. In particular, there was a huge influx of startups in San Francisco and Silicon Valley. Although big, successful deals in companies like Airbnb, Lyft and Uber still happened, there was a major increase in the number of startups being created around the U.S. The startup explosion in the last decade changed the trajectory of venture capital. That is how VC evolved until today, when the startup explosion. This would then give them the return on investment they needed to fall in line with their investors' expectations. If these venture capitalists (commonly called VCs) got lucky, they would have one, two or three of these moonshot successes in their fund portfolio. These firms put in millions of dollars in supergiant rounds for a percentage of equity and got up to 1,000 times returns with an IPO that occurred in less than 10 years. It was used to fund many of the largest technology companies you know, like Facebook, Twitter and LinkedIn, which received funding from venture capital firms by the names of Sequoia Capital, Accel Partners and Benchmark Capital. Once upon a time, there was a very clear definition of venture capital.
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