The End of Venture Capital

An interesting article about Venture Capital in the Credit Crunch.

After being involved with a startup and going through the whole VC cycle, I sincerely sympathise with a lot of the sentiments in this article. There is just a lot of things that go on in the world of VC’s that makes no sense to me.

Although I kept hearing (and even kept saying) that the Web 2.0 boom is not like the dotcom boom, there were so many things that made me uncomfortable. Like Internet companies that are getting zillions of dollars on no revenue. OK, we have all heard about this and we understand it, but there is the fact that they are not making money, and never have, did and in many cases, never will be.

So in saying that, there should be a shake up out there, and more importantly, I would like see some of these startups actually start with very little cash, like we have all heard and know about, but then see it be sustained themselves to a profit. Then get the VCs in.

There, that’s my 2c…..