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THE SHIFTING SANDS: VENTURE CAPITAL AND THE FUTURE OF TECH FINANCE By Evan Anderson Why Read: Venture-capital returns have suffered greatly while many unicorns over the past five years have turned out to be ponies, at best. What does this mean for the future of VCs, and what other sources of capital are available? _______ If there's one thing anyone who has spent time around the startup world knows, it's that everything runs on investment capital. Yes, some very enterprising and wily founders manage to bootstrap their whole way through the early stages, but these cases are rare. And sooner or later, nearly 100% of founders need a capital injection to keep growing. Traditionally, venture capitalists are always there waiting to jump in for a successful-looking company. Given how much money can potentially be made in the tech world, this makes obvious sense. Founders have the tech, investors are hunting better returns than what they can find elsewhere, and risk is exchanged in the form of dollars between two parties who need each other. Increasingly, though, it is beginning to look like there are glitches in the system.
The Brutal World of Startup Investing |
