Learning to Surf – The Ebb and Flow that Propels VC Returns
VCs need to invest in more capital-light Internet companies. No, VCs should be investing larger sums in capital-heavy cleantech companies. Wait, VCs need to evolve and re-invent themselves. Scratch that—VCs need to get “back to basics,” working their craft at a wooden hobby bench like Santa’s little helpers. Thin the herd: Ship half of the VCs to Algeria to ensure success for the rest... Popular prescriptions to cure such VC market schizophrenia almost always include at least one glaring omission: Context. So many discussions of venture's ails consider the industry in isolation, exclusively from the practitioner’s perspective. It’s as if an individual investor reviewed their brokerage statements over the past two decades and concluded: “I sure was a better stock picker in the late 1990s.” The truth is VC’s success is connected and correlated to global financial markets and flows of institutional capital.
