Sitting on cash may be better than burning cash. It used to be that shoveling cash into a furnace to inflate the balloon was guaranteed to work. Someone always

Sitting on cash may be better than burning cash. It used to be that shoveling cash into a furnace to inflate the balloon was guaranteed to work. Someone always was buying whatever was inflating above the fire. SV selling to SV. Now the question is whether the a rig is flight-worthy and has a reasonable chance to pay back even if not acquired. If IPOs are valuated along more traditional models sustainable revenue streams will become central. Some VC may eventually decide to chase a B$ unicorn and loose. Some VC may stop. Some VC may adjust. Paradigm shifts often leave people behind. Risk management is becoming more important. That means smaller investments and a closer look/relationship. Traditional angel approach and possibly the industrialized version of YC and the like are becoming more important. And yes, there is a systemic problem. Pumping money into the economy through financial means has proven not to be effective for medium to long term situations. If this is adjusted maybe bigger investments will flow again into SV. However the business models will be different. In the past the money was poured over SV and a significant part was used to build for SV customers. Customers will be to a larger extent elsewhere. The good news is that is more scalable and sustainable.