Interesting post on the state of Venture Investment. The comment about the broken venture model is right on. Recently, venture capitalist have been neither. It really feels like the early state entrepreneur has to find money outside of venture via angels or strategic. It’s a shame since the real value that venture brings is being able to take these early stage ideas through to a company.
I don’t think there is an inherent ceiling on venture investment but rather a cap on the return. They do need to change the model from all home runs (x10) to more singles and doubles (2-5x). What really limits them is the partners bandwidth to manage the investments.
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