Venture capital's software bias creates challenges for materials and chemistry start-ups
By
Michael Burrows, special to C&EN
Summary
This opinion piece argues that venture capital's dominant model is optimized for fast-scaling software companies, creating a bias that disadvantages chemistry- and materials-based start-ups. It explores how this bias shapes investor evaluations of opportunity, risk, and success, and calls for new investor expectations and a redefinition of value for materials-based start-ups in manufacturing.
Source
bskyVenture capital's software bias creates challenges for materials and chemistry start-upscen.acs.orgKey quotes
· 3 pulledVenture capital often presents itself as technology agnostic. In practice, today's dominant VC model is optimized for fast-scaling software.
That bias quietly shapes how investors evaluate opportunity, risk, and success.
Manufacturing realities demand new investor expectations—and materials-based start-ups must redefine their value.
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