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.
Still waiting for exits - Venture capitalists need exits, investor support, expert says, January 24, 2013
Venture Capital Doesn't Scale - very smart observation by Fred Wilson, Sept 16, 2011
Most Venture Capital Funds Lose Money, Fortune Magazine, Feb 16, 2011
Tsunami Rips Through the VC Industry, by Danny Robinson, Bootup Labs
Why Venture Capital is Dead from Innovators blog.
The Venture Capital Industry is Broken - And How to Fix It - Part 1, Jack Porter's excellent summary of the industry and the numbers.
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
Venture Capital Breakdown - Globe and Mail May 8, 2009
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
Many Internet Start-Ups Are Telling Venture Capitalists: 'We Don't Need You'
Wall Street Journal, October 31, 2005