I wrote an article against small Venture funds topics to which I often get a reply similar to this one from Roger Ehrenberg at IA Ventures:
Roger tweets:<$250mm. I guess @usv @firstround and @iaventures should just pack up
To which I replied: exactly. Just because there are people, funds and firms making some money does not mean that is good for the innovation ecosystem.
Case in point: many VC firms made money in the bubble only to leave a lasting mistrust with public markets in technology companies since. So, the perpetuation of technology utilities they manage to sell to corporates with even less of a strategic approach to innovation is not a sign of value creation, and the dependency on those M&A transactions signals a further slide into subprime Venture.
The authentic value creation in Venture is when the money of the public (Institutional or otherwise) is put to work to create real value for the public.
Or as Bill Draper recently stated: “The best venture capitalists try to make great companies instead of making a quick buck. Those are the classy venture capitalists. If entrepreneurs have a choice, go to those guys.”