Democratizing Venture Capital And Building A Better World

Forbes

08-07-2025

Mike Collins, Founder & CEO, Alumni Ventures (AV)
Democratizing Venture Capital And Building A Better World
Venture-backed companies have created trillions in market value over the past few decades but less than 1% of U.S. households have access to venture capital investments, according to Forbes. This exclusivity has contributed to wealth inequality and limited the capital available to innovative startups. Today, however, venture capital is being democratized in ways that are opening up more private investment opportunities and making the world a better place at the same time.
In terms of pure financial performance, data from Cambridge Associates shows that U.S. venture capital has delivered a 19.3% pooled return over the past 25 years compared to 9.1% for the S&P 500. It's also a market that is expected to grow over 20% in 2025 according to Wise. The biggest areas of growth? AI, healthcare innovation, green technology and the democratization of the industry.
Increasingly, more people will have the opportunity to invest in startups they believe in and help to bring the truly great ideas into the mainstream. And, with new investors on board, the venture capital sector will benefit from more diverse sources of capital and new perspectives. Including those of next generation investors who are increasingly 'impact curious' and are looking for opportunities to leverage their capital for meaningful change, according to research by the Center for Sustainable Finance & Private Wealth.
Alumni Ventures (AV) has become one of the most active venture capital firms in the United States and is leading the path towards democratizing access to private investing. Since 2014 the firm has raised over $1.5 billion, made investments in more than 1,600 companies, and built a network community of more than 850,000 members. The firm recently launched AV Syndicate, a new investment platform allowing accredited investors to participate in individual venture deals with a minimum investment of only $10,000.
But what sets AV apart isn't just the scale of its network or the size of its portfolio. It's the firm's commitment to democratizing venture capital in a way that channels investment dollars toward startups that are building a better future.
AV was founded in 2014 by serial entrepreneur and Dartmouth alumnus Mike Collins on the idea that venture capital doesn't have to be exclusive. By leveraging the power of alumni networks and new technology, AV is making high-quality venture capital opportunities accessible to individual investors at scale. 'We believe that democratizing access to alternative investments is not just good business—it's essential for a more equitable financial system and a more innovative economy,' said Collins. 'By opening venture capital to individual accredited investors, we're helping to bridge this gap and create more opportunities for wealth creation.'
Recently I had the opportunity to speak with Collins about why democratizing access to venture capital will be good for the investment community and for the world.
Paul Klein: You've built a very different kind of venture capital firm. How did people react when you started?
Mike Collins: When I started Alumni Ventures, people asked 'Why the hell would you bother with a $50,000 check from a heart surgeon in Des Moines?' But that heart surgeon in Des Moines, along with 11,000 other people, is part of a really powerful network that's valuable to entrepreneurs, allows us to get into better investments that gives better returns, and makes it appealing for more people to join the network.
Paul Klein: Why hasn't the same investment ecosystem that has built America's strength in technology, and made the U.S. economy successful, been accessible to ordinary investors?
Mike Collins: With the goal of protecting people from themselves, we've made the world of investing exclusively the purview of endowments, pension funds, and super rich people. Today, however, companies are staying private longer because they can raise as much without being public and dealing with short term thinking, day traders and algorithms. This is creating more opportunities for private investors. For example, OpenAI just raised $40 billion privately. What we're doing is creating a global entrepreneurial ecosystem where venture capital is democratized.
Paul Klein: What makes investing in venture capital fundamentally different from investing in the public markets?
Mike Collins: If you buy S&P's ETF, it's just a number that shows up in your Schwab statement or your 401(k). When you invest $10,000 into Oura, and the company does really well, there's the pride of being really involved in helping something great. That's very different from owning Apple or Microsoft.
Paul Klein: What do you see as the key ingredients that have made U.S. entrepreneurs so successful?
Mike Collins: I would say the strategic strength of the United States, the reason we are in the position we are as a society, is because we have dominated technology, had an ecosystem that supported innovation and entrepreneurship, and sold our products globally. More than that, as we moved from a manufacturing economy to an information economy, many companies, including Google, and NVIDIA, were founded by first generation Americans. One of the reasons that so many great companies are founded by first generation Americans is because it's a tough job and you've got to be gritty. You don't have a lot of trust fund kids growing up in Greenwich starting companies - it's too hard.
Paul Klein: Accessing capital is the first test for every entrepreneur. How does AV help people from underrepresented backgrounds who have an even tougher time starting companies?
Mike Collins: Building a company is hard but great entrepreneurs are able to find ways to access capital. Usually that starts out with a small group of friends and family, or people from your industry that get you going. Then you've got to prove yourself. At some point, the really good companies want a really strong venture capital firm as a lead investor. We also have a dedicated and fully staffed Women's Fund, have invested in an Anti-Bias Fund, and have one of the most tenured and prodigious Venture Fellow Programs in the world, which is specifically designed to help under-represented populations get into VC.
Paul Klein: AI has been flagged as one of the three biggest areas for growth in venture capital investing. What's your take on the risks and opportunities in this space?
Mike Collins: AI has been around a couple years now and I don't see it taking over the world. I don't see massive unemployment. Our healthcare system sucks, our education system is 100 years old, and it's a good thing that change is in order. There will be problems and unintended consequences, but the answer isn't to go back to 1950. Today, an open-minded, AI-native young person who is comfortable with these tools can accomplish so much more, so much quicker, and help older people be more productive.
Paul Klein: Some investors argue that venture capital is risky, especially for individuals. How does your model address that?
Mike Collins: I think venture capital as an asset class is perceived as risky because most people don't really have access to the best deals. We reduce risk by creating a big network of pooled capital and offering people large portfolios where they can own a hundred ventures led by top VCs.
Paul Klein: What's your view of the role that next generation investors will play in the growth of venture capital investing?
Mike Collins: The next generation wants to feel that they're investing in things that they believe in and care about—not just an asset class and a number that grows. There's also the psychology of feeling like you're helping to create the future of something important to the world by investing in areas you can believe in like small nuclear reactors, energy or AI. Next Gen investors also want to be part of a community of people who want to make the world a better place. We hold events where alumni of schools look at their portfolios together and hear from entrepreneurs about the timeframe for how their companies will be impacting our lives.
Paul Klein: Finally, what investments are you most proud of?
Mike Collins: Doing well and doing good are not mutually exclusive. For example, eleven years ago there was a company called Groups that created a national network of drug addiction clinics. It was a good investment and that also solved a problem. Some of our other portfolio companies in energy are creating new technology that allows us to do safer, more local distributed energy production, where we don't have to dig into the ground and burn carbon. I'm very proud of the work they're doing because I want to leave the world a better place for my kids.
Collins and his team at AV are contributing to a fundamental reinvention of the investment industry. One where accessible venture capital may become the first choice for people who want access to private markets and to be part of a community of investors who want healthy returns and a healthy planet. "We're here to democratize venture capital, empower individual investors, and help entrepreneurs make the world a better place,' said Collins. 'That's how we'll reinvent this industry—and why I believe the best is yet to come."