How to spot subprime VC covered by Reuters' PEHub
01.08.09
filed in: Press clippings
The Venture Capital model is not broken, just the majority of operators in it. The same problem as in the home lending markets. Inaccurate calculation of risk and opportunity, deflates innovation rather than boost it.
It is important for our ecosystem and entrepreneurs to not get discouraged, but to understand that not all early stage innovation is built using the artificial world and rule-book many VCs have created around innovation. Large companies like Apple and Google are out-innovating VC portfolio companies left and right, using more realistic strategies that are based on sound business principles and plenty of cash.
We hope articles like these help entrepreneurs avoid wasting time and focus on the right VCs.
BTW: the 24% drop in startup valuation in the accompanying article is the case in point.
