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The VC Model is Broken

There have been hundreds of interesting posts and comments recently on the topic of "The VC Model is Broken".

A few of the more popular ones are linked below. Some of the comments to these posts are fascinating.

Venture Capital business faces 'terminal misalignment of goals', John Cook's Venture Blog. January 14, 2010. Some of the comments in this post illustrate how strong the feelings run on this topic. Very valuable reading.

What Have VCs Really Done for Innovation?, TechCrunch, Sept 20, 2009. Academic research to show that very few companies need VCs and that VCs actually "slowed down the innovation process." Also includes comments on "NVCA's voodoo economics."

An Amateur’s Take on The Broken VC Model, October 13, 2009.

The VC Confidence Problem, PEHub, July 29, 2009. Includes a quote: a recent survey found that nearly 53% of VCs believe their business model is “broken"

The incredible shrinking venture capital, Nature, July 23, 2009.

Half of L.A.s VCs Struggling, PE Hub, June 23, 2009

Honey, I shrunk the VCs, The Deal Magazine, June 5, 2009.

U.S. Venture Capital Industry Must Shrink to be an Economic Force, Kauffman Foundation Study, June 10, 2009.

Investors Want Smaller Venture Capital Funds, The New York Times, June 5, 2009

Venture Capital Elders Say Think Small, Alan Patricof, The New York Times, June 5, 2009

The Death of Venture Capital as We Know It, The Huffington Post, June 3, 2009

The VC Walking Dead: Extended Edition, VentureBeat, April 3, 2009

Do Web Entrepreneurs Still Need Venture Capitalists? New York Times, May 14, 2009

Where's The Money To Pay For All Of This? by Brent Holliday, April 8, 2009

Canda's Venture Capital Industry Having Problems Fundraising, May 12, 2009

Venture Capital Breakdown - Globe and Mail May 8, 2009

Venture Capital Investment Plummets in Q1 2009 to 12-Year Low

The VC Industry is Too Fat and the Returns Too Thin

Venture Capital - Thoughts On The Asset Class - Fred Wilson on long term VC returns

O Canada VC, We Stand On Guard For Thee - The Wall Street Journal

VC Financing: Cold Realities - Canadian Business

Old venture model must reinvent itself. Silicon Valley / San Jose Business Journal

Why VC Returns Languish - great data on the number of IPOs and time to IPO

Could VC be a Casualty of the Recession? by Paul Graham

Maybe We Should Call Them Venture Pessimists - The New York Times

Another article in Forbes: US Venture Fund Raising Plunges

Good article in Forbes: Venture Capital's Coming Collapse

The Funded on The VC Model is Broken, Ideas Anyone?

Venture Beat on The VC Model is Broken

Techcrunch on a Scary Line has Been Crossed for VCs

MarkToMarket post on Is VC a Dead Canarie

Adeo Ressi's blog on The VC Model is Broken

The Canarie is Dead powerpoint on Slideshare

VC Cafe on What Broke the VC Model

Northwest Venture Associates founder Tom Simpson thinks the VC Model is Broken

The Pyramid Principle: Venture Investment in a Capital-Efficient World

Many Internet Start-Ups Are Telling Venture Capitalists: 'We Don't Need You'
Wall Street Journal, October 31, 2005

 

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