The power shift in venture capital: who’s leading the charge?

Tell us which firms are breaking away from the pack

Author

Michael Morgenstern
August 20, 2024

Happy Tuesday Brex community,

Modern venture capital isn’t just about money; it’s about brand power. Top VC firms don’t merely provide capital—they lend their brand to startups, offering a boost in valuation, recruitment, and customer acquisition. Founders often prefer these firms because the association with a prestigious name can significantly lower their overall cost of capital. While LPs focus on returns, founders prioritize the brand value and connections VCs can offer. Are we sensing a disconnect?

However, the landscape is shifting. Today’s top founders often have more narrative leverage than the VCs backing them, attracting investments, talent, and customers on their own merit. As founders' brand power grows, the influence of VC firms is increasingly defined by their ability to complement rather than dominate the narrative.

Which VC firms do you believe are truly differentiated, and why? Reply with your thoughts, and we’ll feature the most compelling responses!

Growing together, Michael Morgenstern

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Harlem Capital is an early-stage VC firm focused on investing in disruptive companies led by diverse founders. The firm has built up a strong brand presence and is a market leader for diversity-lens investing. 

Harlem Capital is New York based and manages $174M across two funds. They lead 90% of their investment and some of their portcos include: Wagmo, MoviePass, OpenBorder, Fintary, and TrashLab.

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