The next big startup may well help reinvest more startups – TechCrunch

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Oper8r, built by Winter Mead and Welly Sculley, wants to help new entrants to the global VC scale. The Accelerator was launched last year as a “Y-Combiner for Emerging Fund Managers,” designed to help solo investors and people starting working capital grow.

The idea was that a smart, well-networked person might be able to raise their first $ 10 million in an initial fund from connections, but when the time comes to move to a $ 50 or $ 200 million fund dollars, managers must have an understanding of how the LP world works.

Now, Mead says all 18 graduates from his first cohort, which include Stellation Capital, Maple VC, Interlace Ventures, and Supply Change Capital, have successfully closed funds. His second cohort is still in the process of fundraising, but for both cohorts, more than $ 500 million has been closed. Oper8r is launching its third cohort next week and will soon announce the launch of Cr8r, a start-up program designed to help talented angel investors increase their investment cadence.

Oper8r’s expansion comes as the rate of first-time fundraising also increases. The Wall Street Journal’s Yuliya Chernova wrote a story this week about how, after years of decline, the rate of first-time venture capital fundraising in the United States is “on course to turn the tide.” The article, taken from an analysis by consultancy firm Different Funds, states that “in the second quarter of this year, some 40% of venture capital fund announcements, which include funds simply seeking to raise capital , were made by entry-level funds, when they accounted for about 20% to 30% of fund announcements each quarter over the past two years.

This data screams that the rise of a solo GP, or ambitious working capital-turned-enterprise, is not one-off, it’s a real trend. This means that there is more pressure for venture capitalists to go beyond a scouting program when it comes to supporting the next big investors – and there is more than one market for formal efforts to scale operations.

Mead, meanwhile, is developing ways to add validation and signal to Oper8r. Many accelerators write checks to further validate their choices, but also to harness the access they gain by helping budding entrepreneurs before leading LPs and VCs notice them. He hinted that Oper8r could pursue a similar strategy as it seeks to be the benchmark for emerging managers.

“I think capital speaks louder than educational programs,” he said. “If you invest money in the opportunities that you go into, I think that serves as a more important signal than someone who has just been on the program. “

In the rest of this newsletter, we’ll discuss the latest dance in the designer economy, BNPL International Week, and why I’m putting Reid Hoffman in the hot seat. As always you can find me on Twitter @nmasc_ and listen to my podcast, Equity.

Edtech wants to have its creative saving moment, and it’s complicated

Edtech and the economics of creators certainly differ in the problems they try to solve: Finding a virtual reality solution to make online STEM courses more realistic is not the same thing to solve as streamlining all of them. different monetization strategies from a creator on a single platform. Still, the two sectors have found common ground over the past year, as evidenced by the rise of cohort-based class platforms.

Here’s what you need to know: I have written about how the overlap of the two sectors causes some complications as the cohort-based classes ramp up. Some fear that turning creators into educators will result in a rush of unqualified teachers with no understanding of true pedagogy, while others believe that true democratization of education requires disruption of who is considered a teacher. .

Edtech Supplements:

TTYL, BNPL

This week on Equity, Mary Ann and I made sense of what appeared to be BNPL International Week: PayPal acquired Japanese Paidy for $ 2.7 billion, Zip bought African Payflex, and Addi raised $ 75. million dollars to prove BNPL’s power in Latin America.

Here’s what you need to know: The global boom is partly in response to e-commerce trends, partly in response to consumer demand for more flexibility in financing. The market is not a win-win, so expect more well-capitalized startups to buy their way into consumer markets outside of their geography.

Another novelty to note:

Reid Hoffman in the hot seat

I’ve been reading Reid Hoffman’s “Masters of Scale” podcast over the past few days. All the while, I felt like a well-networked mentor was giving me a pep talk, with names that turned into GP advice and a behind-the-scenes look at humanity’s decisions.

Here’s what you need to know: While the book gave me a much needed boost of optimism, I still had some criticism. I felt that the book’s choice not to talk too much about the ugliness within startupland creates an imbalance of some sort. It would have been helpful to speak directly about the division dynamics, ranging from WeWork’s Adam Neumann’s impact on how we talk about visionary founders, Brian Armstrong’s Coinbase memo and what it means for the cultivation of startups, or even the role of the tech press today.

So I have an idea. Let’s balance the mirth with the cynical, and let’s do it live. I’m interviewing Hoffman at TechCrunch Disrupt this year, where I’m going to put him on the spot and push him to explain some of the choices he made in the book. Other people I’m excited to see at the show include Peloton CEO and Content Director and Ryan Reynolds.

Purchase your TechCrunch Disrupt tickets using this link, or use promo code “MASCARENHAS20” for a small discount from me.

Around TC

I’ll be honest, everything we talk about internally these days is one thing: disrupt, disrupt, disrupt. Here is the program of the Disrupt Stage, which includes three virtual days of non-stop discussion on disruptive innovation.

All week long

Seen on TechCrunch

Seen on Extra Crunch

And that’s all! It hasn’t been a short week at all, has it?

Goodbye,

NOT