Entries by Georges van Hoegaerden

Price loses its value when money loses its trust. — Georges van Hoegaerden

From a yet to be released presentation “Classical Economics is a Voodoo Religion” on Feb 20th, 2015. See also Trust is the currency of success.

Economics: A system designed to maximize personal freedom protected by the paradoxical rules of collective freedom. — Georges van Hoegaerden

From an answer provided to the question What exactly is Economics? To which I answered on Quora what Economics should be.

Capitalism without the deployment of operating principles that secure a meritocracy is an oligarchic system in violation of the most rudimentary definition of freedom we owe ourselves. — Georges van Hoegaerden

From a question and answer session on the subject of economics on Quora.

Equality is a fantasy of extraordinary proportion. — Georges van Hoegaerden

From a discussion related to “How to fix Twitter“.

If no man is created equal, why then do we debate equal pay? — Georges van Hoegaerden

The pursuit of equal pay is evidence of a meritocracy we don’t have. My comment to an HR representative at one of the largest infrastructure technology companies in the world.

Homogenization of people is a bad idea, we ought to focus on the value of our differences, not on the rut of our commonalities. — Georges van Hoegaerden

Comeuppance on Croatia joining the Eurozone, as predicted in “The Eurozone is on the wrong side of Evolution“, written December 12, 2012. Quote is paramount to the establishment of technology (“How to fix Twitter” and “The bitcoin before the Horse“) and macro-economics as well.

Only realism can breed justifiable optimism. — Georges van Hoegaerden

From a discussion about the future of Croatia, and as referred to in “The positivity that kills us” written September 17, 2013.

The fix to improving asset management’s effectiveness lies in its reinvention, not in the optimization of its bloated past. — Georges van Hoegaerden

From commentary received on “CalPERS change; a new shtick or a new stick?” from December 24th, 2014.

The risk profile – not money – determines what innovation can be discovered. — Georges van Hoegaerden

From my answer posted on Quora about Why VC’s are so negative? on Sept 16, 2014.

An outlier knows no precedent. — Georges van Hoegaerden

As discussed on September 9th, 2014 at a LinkedIn speaker panel #LinkedInRaleigh

‘Innovation’ without renewable socioeconomic value is (government) sponsored bank-robbery of society. — Georges van Hoegaerden

From the upcoming presentation: What makes you TIQ? First published August 7th, 2014.

Freedom stripped of its paradox is no freedom at all. — Georges van Hoegaerden

More on How is freedom working for you?, published July 31st, 2013.

If we want to inspire the world with our spiritual leadership, we must stop selling lies to unsuspecting greater-fools. And lead the world by example, with new rigors of excellence we first and successfully apply to ourselves. — Georges van Hoegaerden

Referring to our self-induced malaise in How is freedom working for you?

The fanatical quest for diversity is proof we yearn for a meritocracy we don’t have. — Georges van Hoegaerden

The lack of a meritocracy is the cause of the fanatical pursuit of diversity as a well-meaning but misplaced consequence. As covered in The Double Entendre of Silicon Valley Tourism, on June 11th, 2014.

Statistics are a measure of consequence, not a matter of cause. — Georges van Hoegaerden

Read The Depravity of Reason from June 2014.

The expert who revels in consequence is, in the context of evolution, merely a rebel without a cause. — Georges van Hoegaerden

Read The Depravity of Reason.

When innovation’s hand-picked “positives” do not yield the renewable socioeconomic value needed to build a brave new world, one must fiercely question the financial arbitrage responsible for trashing innovation’s false negatives. – Georges van Hoegaerden

Why the Mope?

Thumper has been proven wrong. We all said nothing, because we had nothing nice to say. Look what economic mess that got us in. It is time for some honesty to break up the sub-priming of economics. Stay tuned, or forever hold your peace.

Broken From The Top

I am perhaps the most optimistic person the world will soon learn more about, and not just because I spent about $1M of my own money on identifying a solution to our systemic problems. I made that investment over the last eight years as I painstakingly traced down the single root-cause of our self-induced destruction. […]

The Only War Worth Fighting

The only war we need to fight – right now – is to protect the renewable evolution of mankind. An internal war aimed to rid our systems from proverbial pirates who ride the waves of the dysfunction we built. If we win this war there will be much less need to impose our will on others.

Go ahead, ignore me

The economic arbiter that holds our world hostage needs to be reinvented, and only a fool would wait for its purveyors to do so. You are free to ignore me, but the world – as the beneficiary hungry for change – does not.

Economics is about people, not numbers. — Georges van Hoegaerden

From The need to reinvent economics, published April 16, 2013.

Classical Economics is the disease, not the cure. — Georges van Hoegaerden

From For our economy to succeed, classical economics must die, published March 22, 2013.

Top-quartile is a meritless and meaningless indicator of financial performance. — Georges van Hoegaerden

From How top-quartile is running out of merit, published March 14, 2013.

KPCB mea culpa

Top-tier Silicon Valley venture firm Kleiner-Perkins-Caufield-Byers (KPCB) admitted poor performance as reported in a recent article posted on Reuters PEHub. Normally, I would leave that kind of news for what it is, as I have described the symptoms of venture capital’s economic incompatibility with innovation in great detail here for years now, and I would […]

An optimist is someone who combats the pageantry of false positivity. — Georges van Hoegaerden

From Apple’s finite Loop, published February 14, 2013.

Apple’s finite loop

As a 20-year Apple user who has “infected” almost everyone close to me, it hurts me to have to group and introduce the reasons why I think Apple’s loop, after Steve Jobs’ passing, is turning gradually finite. I want Apple to grow up, to become the responsible economic

Greater-fool Paradise

A 2013 venture capital outlook video interview with the National Venture Capital Association reminded me why no self-respecting venture firm or institutional investor should be a member. Especially when it blames the government for the lack of IPOs rather than …

Are VCs still relevant?

The recent news about the reduced investment pace by venture capital in 2012 cannot come as a surprise to those who can separate the mindless cheerleading for a better future (we all want) from our own responsibility to clean-up its Neanderthal economics. We should not stare blind at the quarterly reporting of how fast the […]

Why VC can’t fix itself

I spent some time with Congress and The Senate on The Hill (in Washington, DC) last December discussing the deplorable performance of venture capital (VC), as detailed in my blogs, the preeminent video on The State of Venture Capital and in my new Infographic on The State of Venture Capital.   One arrow in my quiver […]

The Eurozone is on the wrong side of evolution. — Georges van Hoegaerden

From The Eurozone is on the wrong side of evolution, published December 21, 2012.

The State of Venture Capital Infographic

Click to enlarge the info graphic above, and check out the come-to-Jesus in the preeminent video of The State of Venture Capital for more details. Then head over to Renewable Economics™ for a rebirth of sorts, where we shed light on how venture capital has merely inherited its flaws from the poorly defined macro-economics. To correct […]

Angel Venture Forum keynote on 12/12/12

I will be giving the keynote speech to the Angel Venture Forum showcase event on December 12th, 2012 at the National Press Club in Washington, DC (the site of many a Presidential roast). I agreed to do so because this event promises to be unlike the many “flea-markets of innovation“, and we plan to make […]

We’re in trouble

Kenneth Rogoff, a professor of economics at Harvard University wrote an article about internet entrepreneur and political activist Peter Thiel with former world chess champion Garry Kasparov on the subject of their new book covering the collapse of advanced-country growth and their proposed remedy with a new innovation policy. Given the passion I have for straightening out our […]

More delusions of positivity from Tim Draper

In a recent article another victim of Tim Draper’s (founder of VC firm DFJ) delusion of positivity spreads the word about the “Draper Wave”. The recurrence of the wave by which Tim describes the purported cyclical nature of investing, is a desperate tool to keep Limited Partners from fleeing the asset class altogether and sell the pipe dream […]

The greatest lie of all

Now that the presidential election is over, I have decided to give our President and our country one of a series of selfless gifts. Number one: the discovery of the greatest lie of all. The lie that prevents us from finding a permanent solution to our economic malaise. The same lie that prevents us from […]

The evolution of Apple

As most of my readers know by now, I am a fervent supporter of Apple products for some 25 years. Not for some fuzzy nostalgic reason but because Apple has a completely different focus than other computing companies. I realized way back when Apple built QuickTime directly into the operating system the company had set […]

Not a cloud in the sky

Sunday I tried playing music through my Apple TV locally connected to my MacBook Pro that acts as the iTunes server with my music on it. It could not connect to the iTunes store, which it apparently had to. Alas, no music today. Today the weather got nippy, and I logged into my mobile nest […]

Private Equity is investing in hindsight, venture capital is investing in foresight – by Georges van Hoegaerden

The evolution of innovation

Venture capital has failed to earn its stripes as the most effective custodian of groundbreaking innovation, underperforming consumer adoption rate of technology (minimum 7%), delivering mediocre socioeconomic value unable to make a dent in feeding an 80%+ adoption greenfield and instead abusing public trust (with 2-year post-IPO values severely under water), and being blown away […]

CalPERS emerging manager redefinition

According to the publication Pensions & Investments, Joe Dear of CalPERS ($200B+ Total Assets under Management) is said to have redefined the meaning of emerging managers, no longer allowing age-old fund-of-funds to finagle themselves to comply to that definition and rake up an endless chain of (usually) smaller funds. Instead now allowing only first or […]

Will the economy recover?

That was the most prominent question every asset manager, venture capitalist, politician (Nigel Farage, European Parliament and UKIP) and taxi driver asked me during my one-on-one meetings with them in London last week. The fear is palpable.   Action equals reaction The answer to that question is a function of the change you intend to […]

Apple Earpods should start with the brain

Maybe I am just a misfit (aren’t all entrepreneurs) but the new Apple Earpods ($29), albeit much better than the previous rendition of standard earphones that come with many Apple music products, still do not fit snug enough in my ear to run with them, nor deliver a well-balanced tonal range to displace the Bose MIE2 (granted: […]

HP in a bottle

It was striking how today’s The Wall Street Journal covered Heineken’s attempt to redesign its beer bottle to increase sales on the same page with Hewlett-Packard’s new CEO, Meg Whitman, efforts to change the look of its PCs to increase sales. Now, there are some similarities between the two businesses. Both have been in business […]

People on the move

iOS apps hardly produce innovation that drives venture capital style returns, but that does not mean some of them are not utterly amazing. Plane finder is an amazing little iOS application (also available in a desktop browser) that shows you every commercial plane in the sky and tracks its movement in real-time. And people are […]

The lure of Dave McClure

From multiple readers of my blogs I got independently forwarded a recent article describing how celebrated Silicon Valley angel-investor-turned-venture-capitalist (VC) Dave McClure rips the other VCs in the ecosystem as “f***ing arrogant and stupid a**holes”. And sans expletives I agree wholeheartedly with many of Dave’s assessments of the overwhelming dysfunction in VC, his assessment of […]

Why the best cloud is still your own

The illusion proposed by the cloud is that it offers tremendous business benefits, but along with that enthusiasm and (as technologists) our ability to quickly deploy such a technical infrastructure, comes a new set of business risks a cloud prospect needs to think carefully about. The move to the cloud (usually from a local intranet), […]

Why modern portfolio theories are dying

CalPERS, the country’s largest pension fund with $235 billion in assets under management, has given up on investing in in-state private equity and venture capital as first published by Pensions & Investments last week, and some $2.7 billion (of already heavily reduced commitment) in venture capital will be taken off the table and redistributed to […]

The big venture capital mistake

When you think about how 99.4% of venture capital firms fail and how currently 80% of the new money raised is doled out by asset managers to only five (5!) venture capital firms, those of us with a pulsating brain and a beating heart combined with a desire and passion for a brighter future have […]

Venture in China

I get many questions about the role of China in the venture business and I respond to a description of activities deployed by the Chinese government to boost innovation, received from a Chinese engineer (his comments listed near the bottom) residing in the U.S. who manufactures his product in China. While our implementation of venture […]

Why 99.4% of venture capital firms fail

The vast majority of venture capital firms fail to produce consistent venture style returns to their limited partners, as a renowned money-manager representing prominent limited partners as the investor in venture capital firms adamantly proclaims that number to be less than 35. From knowledge about those 35 firms, the majority of which reside in Silicon […]

How to flip-flop a puffer fish

Getty Images is on the chopping block again, according to the Financial Times. This time for a purported $4B by sale or IPO. Amazing, considering we first wrote in 2005 that the company’s stronghold on the sale of digital images is not nearly as solid as the company has portrayed it to be, and we […]

VC performance inching back?

The NVCA and Cambridge Associates are fighting back against the scathing report of the Kauffman Foundation in which VC is characterized as its own enemy, by publishing new performance numbers that attempt to prove the VC performance is inching back. I commented publicly on an article published by Reuters PE Hub, and for the purpose […]