There is a meme out there at the moment that the venture capital model is broken.
For the most part it’s an old, but recurring argument – one that’s rolled out whenever there is a shift in the markets, and usually by successive generations (who may not have seen the previous shift).
Could venture capital be done better. Hell yeah. Could it be done more efficiently – I doubt it. Much of the game is played on experience-based gut feel and, unlike in other asset classes, cold-hearted algorithms will not replace this.
Fred Wilson sums things up brilliantly: venture capital is dead, long live venture capital.