--- title: "Capital is a commodity. Knowing what to do with it is not." url: https://www.seedstars.com/content-hub/life/capital-commodity-knowing-what-do-it-not/ --- 1. [HOME](/) 2. [RESOURCES](/content-hub/) 3. [SEEDSTARS LIFE](/content-hub/life/) 4. CAPITAL IS A COMMODITY. KNOWING WHAT TO DO WITH IT IS NOT. ![Capital is a commodity. Knowing what to do with it is not.](https://seedstars-com.s3.amazonaws.com/images/HeadImage_Investing_Beyond_Capital_With_See.max-1500x500.png) GLOBAL • INVESTMENT ## Capital is a commodity. Knowing what to do with it is not. Seedstars Global MARCH 10, 2022 Even after the unprecedented year that we had in 2020, the VC markets picked up in 2021 and founders raised [157 percent more capital](https://techcrunch.com/2021/08/04/5-factors-founders-must-consider-before-choosing-their-vc/) in the second quarter of 2021 compared to the previous year. Global VCs have invested [$268.7 billion](https://www.reuters.com/business/finance/global-venture-capital-investments-hit-record-high-2021-07-21/) as of July 2021, already passing the total investment amount in 2020. #### WRITTEN BY ![None](https://seedstars-com.s3.amazonaws.com/images/Graham-Brown.max-376x376.jpg) GENERAL PARTNER Charlie Graham-Brown [__](https://www.linkedin.com/in/cgrahambrown/) [CONTACT US](/contact-us/) In emerging markets, where our company [Seedstars](https://www.seedstars.com/funds/international/) focuses its attention, VC capital flow has been growing 40% year-on-year but still represents less than 4% of global volumes, despite accounting for the majority of the world’s population. Whether or not you think this is a bubble (that’s another discussion - good article [here](https://practicalvc.com/is-vc-experiencing-a-bubble/)), one fact remains true: **capital is a commodity.** Some capital will flow faster than others and investment terms must be considered, but assuming all things are equal, the real value lies beyond the capital. It lies in the knowledge, network and support an investor brings to the table. It is not only a matter of market perception or an identified trend. [De Santis Breindel](https://www.desantisbreindel.com/insights/big-venture-capital/) asked CEOs what was the top evaluation criteria when choosing a VC firm. Reputation of the firm came first place, followed by the ability to add value to portfolio companies beyond funding. So how has the industry responded to this? ![corrected04072022.png](https://seedstars-com.s3.amazonaws.com/images/corrected04072022.width-800.png) ## Smart Money and the VC Platform At some point, the concept of “smart money” slipped into the VC vernacular referring to the idea that some money also came with highly sought after expertise and the likelihood of crowding in other investors. Today, the evolution of the concept has brought us the VC “platform”. Smart money was definitely a catchier phrase, but not institutional enough to be turned into something official. The concept of a platform, on the other hand, gives more room for innovation, but still leaves most founders (and even some platform managers) confused. So, the big questions are: What exactly is a platform? How does it bring value? Do you need it as a startup? How can you evaluate it? Read on. ## T-shaped Platforms and the Tetris Fit Keep two rules in mind: 1. No individual or VC firm is good at everything. 2. What a startup needs the most will change over time. A VC platform can add value in multiple ways: network access, fundraising support, talent recruitment, sales, technical knowhow, and the list goes on with both common and rarer startup needs. See the image below on a breakdown of services we typically see in a VC platform from the most common to the rarest. VC firms running a platform need to figure out what skills to focus on and develop a T-shaped profile. For example, YCombinator would probably put **fundraising** as their super power, Coinbase Ventures might cite their **technical knowhow** , and at Seedstars International, the focus is on **growth**. ![t-shaped image new - article 2706 fixed](https://seedstars-com.s3.amazonaws.com/images/t-shaped_image_new_-_article_2706__fixed.width-800.jpg) The value adding components listed in the above image are all fairly high level and each one can be broken down further. For example, all VCs will be able to support with fundraising, but when you dissect this value further, you can cite various components: pitch deck review, fundraising strategy, investor intros (by region and country), cap table reviews, and exit advisory. Whatever the T, it should be clearly explained to you as the founder so you can judge the fit. Each investor will have their own T profile and each startup will have needs that evolve over time. **A good startup <>investor fit would be like scoring a few lines in Tetris.** ## Founders, do your homework As a VC, we ask several hundred questions when we do due diligence on a startup. In return, we probably field an average of 5 questions per founder. Of course we are the ones putting the risk capital on the table and have a fiduciary responsibility, but we really enjoy and respect when a founder does their homework by asking questions, doing some founder referral calls, and maybe even talking to core members of the platform team. To better evaluate the human touch, don’t just reference check the success stories. Try and talk to failed companies in the portfolio too and discover how founders were supported through their final hours. This is probably a more telling sign as to who will have your back through thick and thin. ## Don’t forget the human touch We scoured reviews founders had written on VCs online and the most common comments were regarding soft skills. VCs who were respectful and trustworthy stood out most. Given that a startup<>VC relationship is destined to last many years, the human touch should not be underestimated. Capital is a commodity, the VC platform the differentiator, but working with the right people may have the most profound impact. As seen on [TechCrunch.](https://techcrunch.com/2021/12/23/capital-is-a-commodity/) ![SubmitYourPitch Banner](https://seedstars-com.s3.amazonaws.com/images/1312974_BannerForArticlesSubmitYourPitch_03022.width-800.jpg) [ **Submit your pitch**](https://www.seedstars.com/funds/international/) **to Seedstars International Ventures.** ARTICLE GLOBAL INVESTMENT ## More like this [ ![None](https://seedstars-com.s3.amazonaws.com/images/istanbul.max-320x550.jpg) MIDDLE EAST AND NORTH AFRICA • #### Turkey's founders move from phones to factories Aug. 03, 2026 ](https://www.seedstars.com/content-hub/life/beyond-valley/turkeys-founders-move-from-phones-to-factories/) [ ![None](https://seedstars-com.s3.amazonaws.com/images/istanbul.max-320x550.jpg) MIDDLE EAST AND NORTH AFRICA • #### Building a Resilient Tech Ecosystem in the West Bank and Gaza Jun. 09, 2026 ](https://www.seedstars.com/content-hub/life/beyond-valley/building-resilient-tech-ecosystem-west-bank-and-gaza/) [ ![Why Moldova’s best startups look global from day one](https://seedstars-com.s3.amazonaws.com/images/Why_Moldovas_best_startups_look_global_from_.max-320x550.png) CENTRAL AND EASTERN EUROPE • #### Why Moldova’s best startups look global from day one Some Moldovan startups register a company in Estonia before they ever talk to an investor. Mar. 23, 2026 ](https://www.seedstars.com/content-hub/life/why-moldovas-best-startups-look-global-from-day-one/) [ ![Building under pressure: how Palestine’s startup ecosystem is learning to scale](https://seedstars-com.s3.amazonaws.com/images/Building_under_pressure_-_how_Palestines_sta.max-320x550.jpg) CENTRAL AND EASTERN EUROPE • #### Building under pressure: how Palestine’s startup ecosystem is learning to scale Founders in the West Bank and Gaza build in fragments. Power cuts, travel limits, and blocked payments are part of the job. Out of that reality, a distinct tech scene has taken shape that works lean, tests quickly, and looks outward for growth. Nov. 12, 2025 ](https://www.seedstars.com/content-hub/life/palestine-startup-ecosystem-learning-how-to-scale/) [ ![How Morocco is turning steady signals into a real startup story](https://seedstars-com.s3.amazonaws.com/images/How_Morocco_is_turning_steady_signals_into_a.max-320x550.jpg) CENTRAL AND EASTERN EUROPE • #### How Morocco is turning steady signals into a real startup story Morocco’s startup ecosystem is finding its rhythm. After a quiet 2023, founders and investors regained momentum. Startups in the country raised around 70 million USD across 40 deals in 2024 - almost double the previous year, according to Africa: The Oct. 12, 2025 ](https://www.seedstars.com/content-hub/life/how-morocco-turning-steady-signals-into-real-startup-story/) [ ![These 12 Jordanian startups are solving problems across the Arab world](https://seedstars-com.s3.amazonaws.com/images/These_12_Jordanian_startups_are_solving_prob.max-320x550.jpg) CENTRAL AND EASTERN EUROPE • #### These 12 Jordanian startups are solving problems across the Arab world Jordan has positioned itself as one of the Middle East's most efficient startup ecosystems. While the Kingdom represents just 3% of the region's population, Jordanian entrepreneurs have achieved remarkable influence across the Middle East. Oct. 03, 2025 ](https://www.seedstars.com/content-hub/life/12-jordanian-startups-solving-problems-across-arab-world/) [ ![Six Georgian startups you should know about](https://seedstars-com.s3.amazonaws.com/images/Six_Georgian_startups_you_should_know_about_.max-320x550.jpg) CENTRAL AND EASTERN EUROPE • #### Six Georgian startups you should know about Georgia’s tech ecosystem has been growing quietly beyond its early fintech reputation. The small Caucasus nation has built one of Europe’s most business-friendly environments, and it is starting to show. Sep. 17, 2025 ](https://www.seedstars.com/content-hub/life/six-georgian-startups-you-should-know-about/) [ ![Azerbaijan's practical approach to building a tech hub](https://seedstars-com.s3.amazonaws.com/images/Azerbaijan_practical_approach_to_building_a_.max-320x550.jpg) ASIA • #### Azerbaijan's practical approach to building a tech hub While Silicon Valley startups chase the next consumer app, Azerbaijan's entrepreneurs are solving a more fundamental problem: building the digital backbone that businesses across the region desperately need to operate. Sep. 04, 2025 ](https://www.seedstars.com/content-hub/life/azerbaijan-practical-approach-building-tech-hub/) [ ![Lebanon's startup scene is built for global markets](https://seedstars-com.s3.amazonaws.com/images/Lebanon-startup-scene-is-built-for-global-ma.max-320x550.jpg) ASIA • #### Lebanon's startup scene is built for global markets Lebanon's startup ecosystem operates on a fundamentally different premise than most tech hubs. While entrepreneurs in larger markets might spend years perfecting their domestic strategy, Lebanese founders incorporate abroad and sketch international e Aug. 04, 2025 ](https://www.seedstars.com/content-hub/life/lebanon-startup-scene-built-for-global-markets/) [ ![How Armenia built an ecosystem bigger than its borders](https://seedstars-com.s3.amazonaws.com/images/How_Armenia_built_an_ecosystem_bigger_than_i.max-320x550.jpg) ASIA • #### How Armenia built an ecosystem bigger than its borders Armenia has quietly built one of the region's most sophisticated startup ecosystems. The country's tech diaspora, with deep Silicon Valley roots, gives it an edge that neighboring countries can't easily replicate. Aug. 01, 2025 ](https://www.seedstars.com/content-hub/life/armenia-built-an-ecosystem-bigger-than-its-borders/) [ ![How Mongolia's landlocked startup scene is thriving](https://seedstars-com.s3.amazonaws.com/images/Seedstars_Website_-_Life_content_-_Thumbnail.max-320x550.jpg) ASIA • #### How Mongolia's landlocked startup scene is thriving When you think of Mongolia, startup innovation probably isn't the first thing that comes to mind. But this landlocked country is quietly building something unexpected: a tech ecosystem that's learned to turn geographic constraints into creative advan Jul. 29, 2025 ](https://www.seedstars.com/content-hub/life/mongolia-landlocked-startup-scene-thriving/) [ ![Innovation under pressure: How Ukraine’s tech sector defies odds](https://seedstars-com.s3.amazonaws.com/images/thumbnailukraineblogpost210525.max-320x550.png) CENTRAL AND EASTERN EUROPE • #### Innovation under pressure: How Ukraine’s tech sector defies odds Ukraine's tech sector thrives amid challenges, developing resilient solutions that work in any conditions. See how innovation under pressure creates technology the world needs. May. 21, 2025 ](https://www.seedstars.com/content-hub/life/innovation-under-pressure-how-ukraines-tech-sector-defies-odds/) [ ![How agricultural innovation is shaping up in Eastern Europe and Central Asia](https://seedstars-com.s3.amazonaws.com/images/020525THUMBNAIL.max-320x550.png) GLOBAL • AGRICULTURE #### How agricultural innovation is shaping up in Eastern Europe and Central Asia Agritech startups in Eastern Europe and Central Asia are transforming farming with local innovations tackling drought, resource limits, and climate change. May. 02, 2025 ](https://www.seedstars.com/content-hub/life/how-agricultural-innovation-shaping-eastern-europe-and-central-asia/) [ ![How Egypt is moving from hypergrowth to sustainable innovation](https://seedstars-com.s3.amazonaws.com/images/lifearticle0404thumbnailphoto.max-320x550.png) MIDDLE EAST AND NORTH AFRICA • #### How Egypt is moving from hypergrowth to sustainable innovation Egypt's startup ecosystem shifts from hypergrowth to sustainable innovation, with founders focusing on profitability and efficiency amid changing investment standards and government support. Apr. 04, 2025 ](https://www.seedstars.com/content-hub/life/how-egypt-is-moving-from-hypergrowth-to-sustainable-nnovation/) [ ![Círculo de Crédito anuncia nueva alianza con Seedstars para fortalecer su brazo de Corporate Venture](https://seedstars-com.s3.amazonaws.com/images/thumb240325.max-320x550.png) LATIN AMERICA • TECHNOLOGY #### Círculo de Crédito anuncia nueva alianza con Seedstars para fortalecer su brazo de Corporate Venture Capital (CVC) Círculo de Crédito, sociedad de información crediticia líder en México, está impulsando la innovación tecnológica a través de su brazo de Corporate Venture Capital (CVC) para promover la innovación y el desarrollo tecnológico en el ecosistema de conf Mar. 24, 2025 ](https://www.seedstars.com/content-hub/newsroom/c%C3%ADrculo-de-cr%C3%A9dito-anuncia-nueva-alianza-con-seedstars-para-fortalecer-su-brazo-de-corporate-venture-capital-cvc/) [ ![Meet the startups modernizing Kazakhstan's tech lands](https://seedstars-com.s3.amazonaws.com/images/THUMBNAILLIFE0703ARTICLELIFE.max-320x550.png) ASIA • #### Meet the startups modernizing Kazakhstan's tech lands Kazakhstan's tech startups are revolutionizing infrastructure and services across the vast country, creating innovative solutions to modernize essential systems despite formidable geographic challenges. Mar. 07, 2025 ](https://www.seedstars.com/content-hub/life/meet-startups-modernizing-kazakhstans-tech-lands/) [ ![Tajikistan is building its digital foundations](https://seedstars-com.s3.amazonaws.com/images/lifearticlethumb270225tajikisatn.max-320x550.png) ASIA • #### Tajikistan is building its digital foundations Tajikistan's entrepreneurs focus on building essential digital infrastructure, transforming access to services in a country where internet reaches just less than half of the population. Feb. 27, 2025 ](https://www.seedstars.com/content-hub/life/tajikistan-is-building-its-digital-foundations/) [ ![How Belarusian tech talent is reshaping Eastern Europe's digital future](https://seedstars-com.s3.amazonaws.com/images/100225lifebelarusarticle.max-320x550.png) CENTRAL AND EASTERN EUROPE • #### How Belarusian tech talent is reshaping Eastern Europe's digital future Discover how Belarusian tech companies' migration to Poland and Lithuania is creating new innovation hubs and transforming Eastern Europe's digital landscape with global ambitions. Feb. 10, 2025 ](https://www.seedstars.com/content-hub/life/how-belarusian-tech-talent-reshaping-eastern-europes-digital-future/) [ ![How Moldova is building its tech hub](https://seedstars-com.s3.amazonaws.com/images/thumbnailmoldova070225.max-320x550.png) CENTRAL AND EASTERN EUROPE • #### How Moldova is building its tech hub Moldova emerges as a pragmatic tech hub, with local startups solving real-world problems through practical innovation. Learn how its strategic location and incentives are attracting tech talent. Feb. 07, 2025 ](https://www.seedstars.com/cares/how-moldova-building-its-tech-hub/) [ ![Beyond the Valley](https://seedstars-com.s3.amazonaws.com/images/lifearticle050225thumb.max-320x550.png) GLOBAL • #### Beyond the Valley Discover the hidden tech ecosystems of Eastern Europe and Central Asia, where entrepreneurs are building crucial solutions that transform how millions live and work. Feb. 05, 2025 ](https://www.seedstars.com/content-hub/life/beyond-valley/) [ ![iGravity and Seedstars Join Forces to Manage the SECO Startup Fund](https://seedstars-com.s3.amazonaws.com/images/article310125_thumbnail.max-320x550.png) GLOBAL • #### iGravity and Seedstars Join Forces to Manage the SECO Startup Fund iGravity and Seedstars are proud to announce their engagement as managers of the SECO Startup Fund (SSF), marking the beginning of an exciting new chapter for the initiative Jan. 31, 2025 ](https://www.seedstars.com/content-hub/newsroom/igravity-and-seedstars-join-forces-manage-seco-startup-fund/) [ ![Africa Investment Forum 2024 Market Days: Seedstars Africa Ventures I announces $42m first close](https://seedstars-com.s3.amazonaws.com/images/article6122thumbnail.max-320x550.png) GLOBAL • #### Africa Investment Forum 2024 Market Days: Seedstars Africa Ventures I announces $42m first close Seedstars Africa Ventures I, a venture capital fund making early-stage investments in highly scalable start-ups in Africa, has achieved a first close of $42 million, with participation from the African Development Bank, EIB Global with the support of Dec. 06, 2024 ](https://www.seedstars.com/content-hub/newsroom/africa-investment-forum-2024-market-days-seedstars-africa-ventures-i-announces-42m-first-close/) [ ![Seedstars and Visa Foundation announce first cohort of SEED Inclusivity Program supporting entrepren](https://seedstars-com.s3.amazonaws.com/images/51224_thumbnailphoto.max-320x550.png) GLOBAL • #### Seedstars and Visa Foundation announce first cohort of SEED Inclusivity Program supporting entrepreneurs with disabilities in Asia Seedstars and Visa Foundation select 15 innovative disability-focused startups across Asia for SEED Inclusivity Program, supporting entrepreneurs with disabilities and assistive tech. Dec. 05, 2024 ](https://www.seedstars.com/content-hub/newsroom/seedstars-and-visa-foundation-announce-first-cohort-seed-inclusivity-program-supporting-entrepreneurs-disabilities-asia/) [ ![Financial Solutions for Migrant Women Report 2024](https://seedstars-com.s3.amazonaws.com/images/report20241911seedstrarsthumbnail.max-320x550.png) GLOBAL • OTHER #### Financial Solutions for Migrant Women Report 2024 With nearly half of the world's 280 million international migrants being women, their financial inclusion represents both a crucial development challenge and a significant market opportunity Nov. 19, 2024 ](https://www.seedstars.com/content-hub/insights/financial-solutions-for-migran-women-report-2024/) --- ## Sitemap - [Sitemap](https://www.seedstars.com/sitemap.md): every public page on this site - [llms.txt](https://www.seedstars.com/llms.txt): what Seedstars does and where to start