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I feel tricked by link-bait on this one. Fred Wilson makes no mention of the "collapse" of VC. He doesn't even come close to the concept. Tl;dr of the article:
by vm 14y ago
I feel tricked by link-bait on this one. Fred Wilson makes no mention of the "collapse" of VC. He doesn't even come close to the concept.
Tl;dr of the article:
-many VCs are having trouble fundraising because of mediocre returns
-Fred thinks it's good that there is a lot of early stage funding (angels). It should create more entrepreneurs
-Some VC funding is too concentrated in megafunds. If that $ was spread across funds, then there would be more diversity of ideas and companies
-Will Kickstarter/crowdfunding replace VC? Too early to tell
- nacker 14y agoEven more succinct tl;dr: - It's a diversity problem. Too much money in the hands of white guys in suits. "I don't think there's too much money sitting around. I think there's too much money in too few hands. So when six white guys in suits control two and a half billion dollars, that's not a good thing. Instead of being allocated just to one firm, it would be better if that two and a half billion dollars was allocated to 25 firms at $100 million each. It would lead to more diversity or people trying more things: data sciences, urban sciences, transportation, energy, materials science, and many others. "