Yup, that's the one part I disagree with from this article: the ending where he says VC today is inbred. First off, VC today is by no means doing poorly. IPO's

Yup, that's the one part I disagree with from this article: the ending where he says VC today is inbred. First off, VC today is by no means doing poorly. IPO's, incubators/accelerators, and the spillover of excitement from SV to NYC/LA/Seattle/Boston is pretty evident that big money goes where it needs to go. It's more so that there isn't -enough- VC out there today, in my opinion, that's really driving crowdfunding and crowdsourcing. Now that the barrier to entry has dipped so low (technical costs) and the need for innovation is so big, that there just is too much consumer demand to get involved with the game. Up until the JOBS Act, to play ball you had to enter the field as an entrepreneur. No one really takes money anymore from someone who hasn't had skin in the game (whether from a successful startup of failed investment). I like to think of it as thirsty kids at a summer concert, where VC's were the big scary macho bouncers who threw out water bottles to a select few in the front. Only, now, there's more thirsty people than ever and the concert organizers just brought over a firetruck.