
The Coming Brick Wall in Venture Capital & Why This is Good for US Innovation - zuzzo
http://www.bothsidesofthetable.com/2011/06/30/the-coming-brick-wall-in-venture-capital-why-this-is-good-for-us-innovation/
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maxklein
To me, what the post sounds like is "act now before it's all gone!". And he's
the guy selling the product.

I think the VCs realise that an end is coming. And they are trying to get
their %s into as many of the important founders companies as possible, so they
can continue to harvest even when their industry is no longer relevant.

Think about it: The VC industry itself is going to be a casualty of the
internet. These few guys controlling huge funds to decide at their discretion
which companies to invest in is the exact kind of industry that is ripe for
disruption by more direct investment methods...that would be offered by the
internet.

Additionally, as more and more people get rich on the internet, it will be
increasingly easy for new companies to raise money from individuals and then
relying on profits to grow instead of venture capital.

The post here, intentional or not, sounds like these guys realise that their
age of power is coming to an end, and they want to do one final milking.

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mgkimsal
It does seem analogous to the record industry 20-40 years ago. You needed
capital to record/produce/distribute. A record company had the capital, and
the connections to market you to people who would buy the product, and had the
marketing channels (radio, tv, print) in line to promote the product.

VC has the capital you need, access to a network of investors, and media
connections to help promote.

This does seem like a model which will morph/fade, and possibly more quickly
than we saw the record industry take its lumps. YC/Techstars/incubators and
such seem to be proactively trying to change the rules of the traditional
VC/investment game, but still keeping some of the better aspects.

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michaelpinto
It wasn't long ago when everyone was saying that the age of the tech IPO was
dead and that would kill VCs. Well here it is and much to my amazement tech
companies are going public again -- to me that means there's life in being a
VC yet...

