Entries tagged with “venture-model”

Venture investment activity

Once again the year end numbers are out and the ritual wringing of hands has started. As is often the case, Fred Wilson has a clear point in his post The Venture Diet is Working. His basic point, which many others have also made, is that there is too much money floating around the venture industry and that this excessive amount of money drives down industry returns. If there is less money invested in any given period, presumably it will go to the better deals (generally speaking) and will ultimately provide better returns. You can’t argue with that proposition. It... More

More on the state of the VC industry

Bill Gurley in his abovethecrowd.com blog has a fine summary of what is going on with the VC industry and where is it going. I don’t think there are any new thoughts here, but it put a lot together and makes some pretty credible sounding predictions. One prediction is that the VC industry could become half the size it currently is. He says, the VC industry will shrink in kind. How much will it go down? It is very hard to say. It would not be surprising for many of these funds [the pension funds, endowments and foundations that invest in venture funds]... More
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