HBR’s article “Venture capitalists get paid well to lose money” seems to suggest losing money is the worst that can happen. Unfortunately, there is a much more sinister and lasting side-effect from the continued under-performance of venture capital.
I am a serial entrepreneur, venture catalyst, 4x CEO and board director so frustrated with our dysfunctional systems that I decided to reinvent the economics holding an egalitarian world and our evolution hostage. The world as my next startup. More.
HBR’s article “Venture capitalists get paid well to lose money” seems to suggest losing money is the worst that can happen. Unfortunately, there is a much more sinister and lasting side-effect from the continued under-performance of venture capital.
The long of Facebook is in danger because the economics of its social system violate the most rudimentary principles of a free-market mechanism.
From the upcoming presentation: What makes you TIQ? First published August 7th, 2014.
More on How is freedom working for you?, published July 31st, 2013.
Venture capital has turned subprime, which opens up a fantastic opportunity to turn it prime (again). This narrated presentation begins to explain how.
Subprime venture capital causes a fallout of tremendous proportion. But the Triple Threat Founder leads the way in misappropriation of venture capital and risk.
Referring to our self-induced malaise in How is freedom working for you?
Yes, venture capital has changed. Downstream, with the aid of government interference, perpetuating its ever sickening and convoluted economic consequences. But it does not need to be this way.
Heavy reliance on data leads to the systematic confounding of consequence and cause, and worse, a systematic depravity of reasoning. No need to be an economist to understand how.
Nothing quite sums up the opinion of Horizon 2020, a large new European government program for innovation, better than a plea from its most powerful member state for me to get involved.
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.
Be careful to assign a negative connotation to a “tourist” audience turning off the TV, or to 70% of the U.S. population deciding not to vote, or to entrepreneurs leaving Silicon Valley wanting to contribute to society more than nebulous advertising clicks. For the real winners of our evolution are amongst the recalcitrant tourists of its subpriming.
Read The Depravity of Reason from June 2014.
Read The Depravity of Reason.
Confounding consequence with cause is the reason why we build disheveled systems that are incompatible with our ability to produce. It also deprives from our most basic human right, universal freedom.
We have created a fantasy world, running out of inspirational character. We must breathe new life in the brave world we envision. So the world we want to escape to, is the world we actually live in.
Symantec’s problems are not unlike those of other corporations who refuse to listen to their self-induced inconvenient truths. It does not take a genius to fix Symantec, it only takes a truth-finder ready to re-align with the booming demand in internet security.
The constitution of The United States of America was not designed to serve as a framework for the diverse needs of freedom that inspires the world. We now realize for us all to be free, freedom itself must be freed. Requiring a new economic framework we call Renewable Economics™.
Online technology services are poised to reach every citizen of the world. But as technology’s operating systems continue to ignore modern economics, their impact will yield more oligarchic governance than its “analog” precedent. With naive populism cheering on the regression of its own power.
Social networks must change if they want to survive and become a driving force of good. And all it takes is the removal of social from socialism.
Freedom itself must be freed from its current narrow definition and outright misplaced control, if we want the bravery of its pursuit to be responsible for the invention of a much brighter future.
Broken ideologies break the spirit and the opportunities of all people. Those ideologies are omnipresent, but can be fixed in one fell swoop. With a new master ideology that treats all people with the respect they deserve, and maintains a healthy equilibrium with nature.
Freedom is the hallmark of American society, an attraction that led me to this country to begin with. Little did I know then, I would have to define the economics of freedom myself, if I ever wanted to live amongst it.
Courtesy of WhiteHat Security comes a new browser (in beta) that promises to offer new levels of “out-of-the-box” protection to anyone surfing the internet. A worthy and wholesome proposition we should all pay very close attention to.
The game of soccer, or most sports for that matter, deploys better economics than the self-proclaimed “experts” have prescribed for us. To understand the need for robust economics, one does not need to be an economist. A rudimentary understanding of sports will do.
Bitcoin, as the best known non-fiat online crypto-currency is more frequently portrayed as the magic potion of a thriving new economy. Not so fast, say I, as Bitcoin will just aim to make the world flat again.
Thanks for the Windows phone, Apple. Was a comment left by a friend that reflects my opinion exactly. Yet for much more fundamental reasons than the many opacities of a white background one can imagine.
I agree with Jack Dorsey; the low-hanging fruits of technology innovation ripen quickly when attached to existing socioeconomic value. Except that one cannot use our current economic systems to assess such value. Twitter’s limitation is the outcome of economic naiveté so common in technology companies.
To copy Silicon Valley the way it operates today would be extremely foolish. To take its advice, as the guiding principles in the exploration of new ideas that shape our future, would equate to outright stupidity.
Populist positivity amidst serious economic consequences is a charade. A pageantry of false positivity, even seeping through Larry Summers’ short letter to the President. Let’s change our attitude to reflect a more realistic economic outlook, from which we can then reinvent ourselves and the world anew.
I subscribe to exceptionalism. The kind that serves as a glowing inspiration to the world. And that means we need to reinvent ourselves along the new lines of a more respectful and more reliable proxy of global freedom.
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.
Google is making the exact same macro-economic mistakes Microsoft made, with its partners following dutifully in its finite slipstream. The similarities are astounding, and if unchanged, will offer a fantastic opportunity for another Apple to emerge.
Recently I got asked why, with a large social following ourselves, we don’t follow anyone on Twitter. My summary answer is that Twitter should be ignored, because of its barking dog syndrome. But it does not have to be that way.
The use of the phrase “Free Market” by the NYSE Euronext suggests it has a fundamental economic advantage over other exchanges. Nothing is farther from the truth. We must stop these kinds of misleading pretenses from taking control of our future.
Oprah Winfrey’s wise rhetorical relationship-advice comes to mind when reading about the daily abuses of finance, as reported by the media. It is time for us to learn from our mistakes and focus on the infinite evolution of our financial “games”.
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. […]
Now that I have repurposed the role of modern economics pursuant to the rules of nature’s household, the challenge in developing its “operating system” is in its relativity.
Apple has just today been found guilty of e-book price-fixing, and I urge Tim Cook to deploy a new vector of innovation Steve Jobs (admittedly) could have never envisioned.
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.
The term economics has been used and abused in many shapes and derivatives, few one might argue to the improvement of its relevancy and success. I intend to change that.
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.
John Doerr’s purported admission and video interview with Forbes, on the sluggish performance of KPCB, makes him about as believable as Lance Armstong. And that, including his new actions, projects a sad state of affairs from the emperor of venture capital.
Literally anyone with a basic understanding of law can debunk our foundational systems and theses. We must begin to realize that if we want the world to follow our lead in harmony, we should first apply some new rigors of excellence to ourselves.
Mark Suster’s keynote at Venture Alpha East was revealing, but not in a good way. The video demonstrates how a bunch of technocrats should no longer blindly be given the keys to the kingdom of the evolution of mankind.
From The need to reinvent economics, published April 16, 2013.
At the starting point of the definition and purpose of economics begins the most important differentiation between the prevailing economics of today and the Renewable Economics™ I describe in my upcoming book.
From For our economy to succeed, classical economics must die, published March 22, 2013.
Classical economics perpetuate the absence of a meritocracy in finance, but worse, it provides the protection of failure we, as its implementors, allow to flourish.
Venture capital, as the arbitrage of innovation, is the poster-child of greater-fool economics. And groundbreaking innovation that spawns immediate global impact deserves so much better. Less apparent is how greater-fool economics haunts us all.
From How top-quartile is running out of merit, published March 14, 2013.
Top-quartile wins my proclamation as the most ridiculous way to measure VC performance, or any financial firm for that matter. And none of us should be surprised that innovation cannot reach maximum potential, with such meritless accountability of its arbitrage.
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 […]
From Apple’s finite Loop, published February 14, 2013.
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
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 …
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 […]
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 […]
From The Eurozone is on the wrong side of evolution, published December 21, 2012.
There is a reason why I left Europe more than 17 years ago. I always despised socialism. The socialism that is incompatible with finding the outliers of (any kind of) innovation that can encircle the world, and thus the source of placing artificial limits on the opportunity for Europeans to play a more prominent and […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
I mentioned both the term upstream and downstream in some of my previous blogs and quite a few of my readers asked me to explain the intended meaning, importance and their differences within the context of innovation in more detail. I am more than happy to do so since both terms apply to the way […]
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 […]
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 […]
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 […]
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 […]
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: […]
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 […]
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 […]
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 […]
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), […]
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 […]
From The big venture capital mistake, published July 13th, 2012.
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 […]
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 […]
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 […]
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 […]
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 […]
On June 15th 2005, some 7 years ago, I came publicly to the conclusion from having worked in Silicon Valley for 17 years with many startups, that Venture Capital is broken economically (and argued the semantics of “broken”), created numerous blogs on the subject since, and produced The State of Venture Capital, now viewed by […]
With Apple’s phenomenal success of becoming the most valuable company on the stock exchange and arguably the premium brand on the consumer stage, one has to admire Steve Jobs’ foresight and fortitude in re-awakening and repositioning Apple from the deep and desperate hibernation few thought the company could recover from. Praise the board The […]
Yesterday Barack Obama spoke at UNC in Chapel Hill, NC where he highlighted the importance of higher education and referred to the new Consumer Financial Protection Bureau’s (CFPB) role in protecting consumers from deceptive, abusive and predatory loan products in the financial marketplace, with budding students cheering him on. We can do better Barack’s […]
From I warned Apple two years back, published April 12th, 2012.
I am a staunch supporter of Apple and have been for more than 20 years, before the fair-weather friends hopped aboard. Simply because I could see them very early build a better foundation of innovation, designed to the social economic benefit of a broader base than just technocrats. I only own Apple computers and acquired […]
I have been trying to stay publicly quiet on the recently passed Jobs Act as at times I get fed up with my endless stream of put downs as the response to the massive false positivity in Venture. I prefer to spend most of my time thinking about and working on how to fix the […]
AT&T lit the mobile internet on fire when it enabled 4G LTE in one of its test markets in Chapel Hill recently. Speed tests of 16.34 Mbps download and 5.40 Mbps upload through my shiny new iPad blew my home-office landline internet connection away, which makes one think about the strategic consequences of landline internet […]
I cannot speak about the performance of Dixon Doll’s DCM venture fund thanks to the lack of marketplace transparency that prevents most of its participants (and entrepreneurs) in the industry from actually deciphering and assessing the merit of each individual investor or general partner. But the message Dixon Doll sent me about IBF’s upcoming Venture […]
After the preeminent presentation on The State of Venture Capital has been viewed (bullet-by-bullet) by some 11,000 people, we revised The State of Venture Capital and updated it with the latest findings from 2012. Identification of the real problem The State of Venture Capital is unique in that it does not attempt to chase the […]
I wrote a pretty damning blurb on the last public version of iChat, stating it had no credentials to live up to the capabilities of freeware Adium. With (even the beta version of) iMessage that tide has now turned. Now, direct messaging has been around for quite a while, and I will not bore my […]
I read an article on Reuters’ PEHub describing Michael Moritz’ opinion of our immigration policy during the U.S. Citizenship and Immigration Services “Entrepreneurs in Residence” summit, in which Shervin Pishevar, Managing Director at Menlo Ventures apparently concluded: “Silicon Valley is as perfect a meritocracy as one can find”, to which I need to fiercely interject: […]
I am getting tons of questions by readers on my syndicated article “Why Romney is wrong on jobs” and I am pulling a few from behind the branded subscription based firewalls to serve a greater audience. This blog article will be updated (semi) live as more (sincerely inquisitive) questions come in. Rebut #1: Based […]
An article in the Tenessean plays out a very naive summary of the role of Venture Capital with regard to economic growth. Naive because not only does it demonstrate a lack of real world experience with the demi-cartel deployed by an old-boys network in the epicenter of Venture located Silicon Valley, it is factually wrong […]
I am probably the least political person you may meet, in every sense of that definition. Politics have no place in the establishment of an authentic meritocracy. And so I have no specific interest in following or taking sides in political debates (there is good and bad on each side of the aisle) that at […]
The World Bank warned of a deepening economic crisis where developed and developing country growth rates could fall by as much or more than in 2008 and 2009. My prediction exactly when I described the lack of structural changes and further doom and gloom last November as a result. Yet, I don’t always take pleasure […]
As the inventor of Renewable Economics™, we offer no-nonsense advisory at the congruence of economics and innovation.