Venture Investors are Obsolete
Why are venture investors failing to seed new industries and markets? Because venture funds invest not just in all the wrong places, ignoring clear supply and demand signals - but, worse, in all the wrong and same places. Where one pioneer invests, a slew of imitators follow, and so tremendous amounts of cash are poured into the same business design or market space - ad exchanges, social networks, and blogging/vlogging platforms to name just a few recent fads. That striking homogeneity reflects an almost total lack of strategic imagination by venture players.
Two excellent posts by Umair:
http://bit.ly/hShZ
http://bit.ly/h9hR
The question is who replaces venture investors? Umair points to Craig as an example of a radical innovator who succeeded without venture backing, but can everyone bootstrap?
* * * UPDATE: Charlie has a good followup discussion going on at his blog: http://bit.ly/zI4U
