

The Traditional Venture Capital Model Is Broken: What’s Next? - njess
http://thesecurepc.com/vc-model-is-broken-whats-next/

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TedBlosser
would "pool capital from members’ personal investments as well as direct
agreements with outside investors" mean that the outside investors would have
no say? if they have ANY say or influence, then it would be just like the
current model (marrying people without ideas to your idea). This sounds like
it is more like "collective bootstrapping", which is an interesting concept...

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SomeCallMeTim
I actually disagree.

As I understand it, the current model is that the people with money give it to
the venture capitalists, and that it's the VCs who are the ones who interfere
with the start-ups.

Presumably the idea would be that the "collective" would have on-staff
consultants who both advise the start-ups and who convince investors that, in
aggregate, the start-ups will make money.

Though I think the real problem with the VC model is the necessary "hockey
stick" profit chart. The fact that a "lifestyle business" is considered a
failure means that lots of functional, profitable businesses are forced to
grow to the point that they really do fail.

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david927
I agree that VC is dead for all those reasons and more.

I think what's next is this: <http://me-vc.com>

Companies have to register in Jersey (the island, not the state), and there
are some other legal and regulatory hurdles to overcome, but the future is
definitely in micro-equity.

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mdlm
Nice. :)

When is me-vc.com going to launch?

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david927
Probably sometime this Summer; there's a lot to work still ahead. The name
will be different, actually. The most difficult aspects of the startup are the
legal and regulatory ones.

If you want to know more or be part of the private Alpha, just email me (the
address is in my profile).

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warfangle
The proposed solution reminds me a little bit of this:

<http://thecollectivecontext.com/about/>

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mdlm
Thanks for this link. :) I wasn't aware of it.

Hugging is extremely important as I argue in this video:
<http://www.youtube.com/watch?v=PemCDigV680>

xo

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hpvic03
Does anyone really think that VC can be "fixed"? I don't think VC is broken -
it's just the nature of the beast. Interests rarely align 100% in business.

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mdlm
I think the VC model can be radically improved for most of us.

The work of Nobel Peace Prize winner Muhammad Yunus is a great example of an
alternative to the standard VC model. It gives me hope that we can do better.

