Understanding the Criteria Behind Venture Capital Worldwide Rankings: The Midas List 2023

For 22 years, Forbes has been publishing The Midas List, which ranks the top 100 venture capital investors in the world based on their portfolio performance. This year’s list, launched in May 2023, reflects the current state of venture capital and the challenges faced by tech companies and startups.

According to Alex Conrad, the editor of the list, this year’s Midas List can be considered the “revenge of the old investors with IPOs.” Many new faces from last year’s list have moved down or off the list, and some old faces have returned to the top due to the absence of large IPOs and the drop in valuations of some high-profile unicorns.

Neil Shen, a prominent venture capitalist in China, returned to the top spot on the list due to his investments in a number of Chinese IPOs, including Byte Dance, the parent company of TikTok. Byte Dance, despite its controversial reputation and the uncertainties surrounding its future, is considered the most valuable startup in the world, with a valuation of $220 billion.

The list also features some newcomers, including Lauren Celodny, a partner at A Crew Capital, and Adeyemi Ajao, the founder of Base Ten Partners and the first black investor ever to be included in the Midas List. However, the list still lacks diversity, with only 11 women out of 100 investors.

The Midas List reflects the wider trend in the tech industry of a “flight to quality” and a focus on substance rather than hype. Venture capitalists are reminded that the ultimate goal is not just a high valuation, but to create value for investors and stakeholders. As the tech industry experiences a sober moment with tough situations, such as layoffs and budget tightening, the Midas List serves as a reflection of the current state of venture capital.

While the lack of diversity on the Midas List is still a concern, the up-and-comers featured on the Midas Brink list offer hope for a more diverse future in venture capital. As the industry evolves and adapts to the current challenges, it will be interesting to see how the Midas List reflects these changes in the years to come.

The Midas List 2023

As of 2023, the Midas List is still dominated by venture capitalists from the United States and China, with 59 and 18 members, respectively. The remaining 23 members come from a variety of countries including the United Kingdom, India, Germany, Sweden, Switzerland, Uruguay, Israel, Singapore, and the United Arab Emirates.

In terms of notable deals, Coinbase, the popular cryptocurrency exchange, appears to be a common theme among the Midas List members, with six VCs having backed the company in its early stages. Other notable deals include investments in companies such as ByteDance, Xiaomi, HashiCorp, Freshworks, and Airbnb.

It’s worth noting that several members of the 2023 list are also newcomers who weren’t on the previous year’s list. In fact, 22 members are first-time entrants, demonstrating the ever-changing landscape of venture capital and the emergence of new players in the industry.

Furthermore, the Midas List also reflects a shift in focus towards investing in companies that address issues such as climate change, healthcare, and social justice. This is evidenced by the inclusion of VCs such as Uncorrelated, which focuses on investing in solutions to address climate change, and Qiming Venture Partners, which has backed companies like New Horizon Health, a cancer diagnostics company.

Overall, the 2023 Midas List highlights the continued importance of venture capital in driving innovation and entrepreneurship, and the diverse range of companies and sectors that VCs are investing in.