VCs are just doing the same investment strategy that record labels used to do... before file sharing decimated their mechanical royalty agreements. For every B

VCs are just doing the same investment strategy that record labels used to do... before file sharing decimated their mechanical royalty agreements. For every Britney Spears, you had 10+ other acts that could barely produce a break-even single. It's highly Pareto-driven. Combine that with the fact that 2016 has only seen 7 tech IPOs... And the fact that investment in sub-25M cap is dead thanks to Sarbane-Oxley/Basel III... And GDP growth forecasts being cut by the IMF... The only thing propping up the tech market right now is the fact that Apple, Microsoft and Google hold 23% of all U.S. corporate cash. Exit strategies pivot around whatever initiatives these three players choose, which means they, in essence, control the direction of tech innovation without having to acquire a single business. VCs will automatically organize their investments based on the acquisition habits of those three players in the hopes they get caught in the net as well.