Nearly always, a successful corporation has some expertise in some market. Then, the corporation can, and sometimes does, use that expertise to conceive of pro

Nearly always, a successful corporation has some expertise in some market. Then, the corporation can, and sometimes does, use that expertise to conceive of projects, evaluate them, and execute them. And the corporation can get the financial rewards from a successful project. However, in US information technology, from all I've been able to see from looking at the biographies of hundreds of US VCs, only a few in the whole country have much expertise in anything technical, in any market in business, or anything beyond general management, marketing, legal, or finance. So such VCs are not in a position to evaluate projects except in terms of 'traction' or accounting results or just a little of team or founder personality. To be more clear, large and crucial parts of US culture are really good at evaluating projects just on paper; such parts include Ph.D. committees, editorial staffs of leading peer-reviewed journals of original research in STEM fields, the NSF, NIH, and DARPA, and many corporations with their expertise in their markets -- GM can evaluate essentially anything having to do with cars and trucks; Exxon for oil; Boeing for airplanes; GE for airplane engines; Intel for microelectronics; etc. So, net, in information technology, generally corporations have much more expertise to evaluate projects than do VCs. For a more general reason, in recent years, on average the return on investment (RoI) of US VCs has been poor, and evidence is in, say: http://www.avc.com/a_vc/2013/02/venture-capital-returns.html#disqus_thread http://www.avc.com/a_vc/2013/02/venture-capital-returns.html... http://www.kauffman.org/newsroom/2012/07/institutional-limited-partners-must-accept-blame-for-poor-longterm-returns-from-venture-capital-says-new-kauffman-report http://www.kauffman.org/newsroom/2012/07/institutional-limit... We have to suspect that, on pursuing new projects, generally corporations do better than the record of VCs.