Yesterday’s, NYTimes article on Union Square Ventures (USV) entitled “A New Kind Of Venture Capital Firm” is an interesting read and I’m glad to see the media beginning to pick up on this.
I’ve been following USV for a whlie now and actually interviewed Brad Burnham in preparation for a session at the Open Everything Retreat on Investing in Open. They seem to have a knack for investing in webtech ventures like Twitter and Wesabe that have models that can be deeply disruptive to the systems they are taking on and where the question of how they are going to make money from them is far from answered. And now they’re turning more of their attention to conventionally ‘social’ issues including education and the environment.
Coming off my latest exploration of the social venture capital sector, I’m looking forward to seeing USV coming into this space – and I don’t think it’s much of a stretch. Investments like Twitter and Wesabe are not too dissimilar from making investments in social change and innovation. Both are venturing toward systems level change – and come with a high degree of complex ambiguity.
At the same time, we are beginning to see a new mode of organization taking shape that challenges how ventures are built and therefore how we invest in them. Where all of these things come together is where I’m betting we are going to find some deep innovations on the new kind of venture capital firm I think USV and others are all working their way towards.
In the meatime, if you’ve encountered – or are thinking of – any innovations in this area please pop them in the comments or over in the public wiki on ‘Investing and Open‘. I’m playing with some ideas myself and will be adding them in there and here on this blog as they develop.