While fintech firms have helped to change the shape of financial services over the last decade venture capital has largely stayed the same; Alex Lazarow of Cathay Innovation writes in Forbes that he sees three areas that venture firms can change; revisit existing products with new business Models, and create new products to upend the traditional venture fund model; automate decisioning and flatten access to capital; Lazarow references Social Capital’s “capital as a service” algorithms which have removed bias from their decisions and results show that 80 percent of founders were nonwhite and 30 percent women; target the underserved and focus on impact, only 0.7 percent of venture capital goes to the entire Midwest; funds need to do a better job at focusing on the innovation that resides outside the coasts and in the middle of the country because innovation does not have borders. Forbes
