A Scary Line Has Been Crossed For VCs
TechCrunch —
... At a recent presentation at Harvard Business School, Adeo Ressi argued that the VC model is broken. That is nothing new for Ressi, who is the founder of the VC-rating site ...
Why VCs Failed
WatchMojo.com Business & Technology —
... VCs failed this time around for one simple reason, the Web was a haven for free, ad-supported content or services, and VCs lacked experience in advertising. Consider the fact that they so heavily bet on user generated content (UGC), which failed to take off… ...
A Slightly Different Perspective
A VC —
... I've been reading a bunch of posts recently suggesting that the VC model is broken. But guess what? It's always been broken. As Jeff Nolan points out in ...
Around the Web 11.13.08: Today's coffee talk: Who broke venture capital? Discuss amongst yourselves.
L.A. Times Tech Blog —
... -- Is the venture capital model broken? Yes, it is, says journalist/entrepreneur Matt Marshall. VentureBeat
-- Ha, the model has always been broken, says venture capitalist Fred Wilson. A VC
-- The real reason for the epic fail this time? Venture capitalists don't get advertising. HipMojo
-- Is Apple building a search engine? TechCrunch
-- Citi's Mark Mahaney stops drinking the Google Kool-Aid. TechCrunch
-- The Dane ...
Why venture capital won't save your job [Meltdowns]
Gawker: valleywag —
... That insider is Adeo Ressi, the lanky, geeky founder of TheFunded.com, a site which lets entrepreneurs rate venture capitalists on everything from smarts to etiquette. (One effect of the site: Entrepreneurs say they no longer see as many VCs rudely pecking away at their BlackBerrys during pitch meetings.) Ressi recently gave a presentation to faculty members at the Harvard Business School. His message: venture capital has crossed a line. ...
Is the VC Model Broken? Far From it [GigaOM]
GigaOM Network —
... any more than any other boom-and-bust industry is broken. It’s likely to go through a restructuring as a result of the current downturn, and some VCs will undoubtedly go out of business, as they should. But there will always be VCs, just as there will always be gold companies — and airlines. ...
The End of Days is Nigh
WatchMojo.com Business & Technology —
... convince advertisers that online video is worth it. Even the so-called experts are scratching their heads.
- Which only means one thing, if before the crash you raised $10M on a ludicrous pre-money valuation, expect your VCs to give you call (if they have not done so already) telling you that you are about to be fleeced, see your stake reduced, so that they can make even on the next round… if there is a next round.
- VCs, meanwhile, have their own problems: they now are a net negative in the value creation category. ...

