Reading Peter Rip’s excellent post titled The Power of Venture Myth has me thinking this question: is the traditional VC industry ready for a disruption?
“VCs lose 36% on the median investment.”
Doesn’t that seem unnecessary? Does focusing on the potential winner to make it a huge hit force the other investments to ‘lose’? Why must there be a huge winner and a median loss? Is this a healthy mentality to have as an investor - that you need to seek out the hits in the portfolio and focus on that? As an entrepreneur do you want to trust your company to someone who may end up kill it off to focus on a home run?
This seems like there is an opportunity here — disrupt the traditional VC business model.
(I think we’re already seeing it to some degree, but I’ll post more on that later).
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