>> I suspect that if a VC tried a new model (focusing on sustainable growth and revenue/profit), they'd find that they'd have a healthier portfolio that was lar

>> I suspect that if a VC tried a new model (focusing on sustainable growth and revenue/profit), they'd find that they'd have a healthier portfolio that was largely illiquid. Well, if VCs were to concentrate on sustainable growth and profits, maybe we'd see a resurgence of the flacid IPO market. It wasn't too long ago that tech entrepreneurs were motivated to make profits which then allowed them to take their companies public. Seqouia would not have made a crazy-multiple on their investment if Google had focused on being bought pre-revenue in preference over creating profits and taking themselves public. Google's IPO absolutely dwarfs YouTube's acquisition. I think a VC model encouraging profits over growth would be a healthy thing for everyone!