The financial anatomy of VC firms came as a surprise. It wasn't till I read "mastering the vc game"# that I understood how fucked things are.
The strucure breeds mediocrity and the culture that founders hate.
Unfortunately, the people that need convincing are investors in VC firms. Bad returns are the only thing that will convince them. Many regard the category of VC as doomed to significantly shrink; this small chunk of finance in general can't support itself. There are more VC firms than successful exits.
Well, more VC firms than > $100 million exits over the last 10 or whatever years.
I agree there's plenty wrong (as you'll find with any industry or its institutions), but I'm not entirely sure you can blame VCs as a whole for their terrible recent results. Not only does it include two nasty recessions (the one early in the last decade was particularity focused in the areas VCs invest(ed) in), but the important of the IPO exit slamming shut cannot be overemphasized.
Venture capital had a great run from the end of the '50s to the beginning of the last decade, but rules of the game have changed and so will the industry. And as you note, most everyone is betting on a significant shrink as one of the changes.
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The financial anatomy of VC firms came as a surprise. It wasn't till I read "mastering the vc game"# that I understood how fucked things are.
The strucure breeds mediocrity and the culture that founders hate.
Unfortunately, the people that need convincing are investors in VC firms. Bad returns are the only thing that will convince them. Many regard the category of VC as doomed to significantly shrink; this small chunk of finance in general can't support itself. There are more VC firms than successful exits.
# horrible name, good book
Well, more VC firms than > $100 million exits over the last 10 or whatever years.
I agree there's plenty wrong (as you'll find with any industry or its institutions), but I'm not entirely sure you can blame VCs as a whole for their terrible recent results. Not only does it include two nasty recessions (the one early in the last decade was particularity focused in the areas VCs invest(ed) in), but the important of the IPO exit slamming shut cannot be overemphasized.
Venture capital had a great run from the end of the '50s to the beginning of the last decade, but rules of the game have changed and so will the industry. And as you note, most everyone is betting on a significant shrink as one of the changes.