Embracing experimentation in VC
Roger Ehrenberg
19810

I agree. VC’s business model is in need of disruption! I have spoken to many VC’s and they all complain about the lack of opportunities in the startup space. Almost all of he VC principles are tasked to back already proven startups, crowding into less than 200 firms. Naturally, forcing up valuations and actually increasing the risk and possible implosion of the bubble it will create. IMO, value can be found at seed stage if the VC’s focus on learning about market opportunities and customer problems. It is only then, at the inception, the VC’s will discover value and can far more accurately match their capital and “the problem” with the right entrepreneurs who are trying to solve these urgent customer problems. Too many venture capital firms chasing industry trends, i.e. VR, AI, FinTech, etc. and fund already solved problems. The current VC business model, in most cases, is unlikely to yield enough of return on the capital to rationalize the risk.

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