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Heat Death: Venture Capital in the 1980s (2015) (reactionwheel.net)
67 points by yurisagalov on Nov 13, 2019 | hide | past | favorite | 5 comments



Really interesting article.

I am not convinced that we are more like the 80s than the 90s in terms of the types of risks VCs are willing to take, but I do appreciate that sense of the cycles in investing. (dearth of investors -> high returns -> everyone pours in -> returns dry up -> everyone leaves -> dearth of investors)


I think when this was written everything seemed pretty great. In 3 years it all looks like '90s to me, crossing his criticality into non-risky bets and slanting non-tech plays as some kind of tech-level margin plays (real estate, kitchens, delivery etc). There's a chance some of these non-tech plays turn out to be great monopolies (primordial Amazons) on a very extended time scale, but they are effectively using investor greed/incompetence to do so.


This is due to 2 factors a) larger markets can better set price to value b) as markets grow value declines due to opportunists.



This kind of broad historical article is worth thousands of pages of financial press.




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