Kara Swisher at All Things Digital correlates the false positivity of Venture Capital fundraising with a not so bad economy. Wishful thinking perhaps, here is our response:
Well, average returns of VC funds over the last 10+ years are still in line with the economy, both are negative. More money-in using the current flawed VC economics, in violation of free-markets, only subscribes to how clueless Limited Partners are or how large the size of the Private Equity overhang still is.
We really should be ashamed the venture asset-class with a wide-open greenfield still cannot produce returns outperforming hundred-year old asset classes.
There is something seriously wrong with the marriage counselor – VC – unable to join the interests of LPS with the interests of innovation, regardless of the state of the economy.
Read the online article with our response at All Things Digital.
