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Are We Reaching the Limits of Silicon Valley’s Venture Model?
- FiatLuxDave 10y agoIt seems to me that the big issue with the SV venture model is the geographic limitation of its current implementation. The reason that there is too much money chasing too few deals is that the money is 'stuck' in certain places (SF, NY, Boston, Austin). The assumption is that if you want to play the VC game, you go where the money is. But not all good opportunities are in those locations or are capable of moving there. And that is why we have mad inflation in the money centers, while the rest of the country is living with deflation. I'm waiting for the next wave of VCs to figure out how to overcome this geographic limitation and grab those opportunities which are currently being ignored.