Just today, I received an article written three days ago by Tomasz Tunguz of Redpoint Ventures in Menlo Park – California, from an investor-friend with the short title “You were ten years ahead…”
I was, after all, the first coining and describing the subpriming of venture capital more than ten years ago and feverishly harping on how when the theory that determines what can be discovered (Einstein) is broken. Thus, the purview and quality of discovery will be broken.
As a result, for the last ten-plus years, we have attracted mind-numbing innovation with minimal, if the not hostile, socioeconomic impact on humanity. We should be ashamed of ourselves for letting the idiocracy on stilts carry on for this long, with the world mindlessly embracing and copying the subpriming of the venture capital theory.
I blame the delayed recognition of the state of venture capital. I first conceived in a formal presentation in 2010 and have since updated on the misplaced admiration of a cunning pump-and-dump scheme. A scheme unable to produce regenerative socioeconomic value for humanity and eventually reach the last of the greater fools in the chain: the innocent public. The public has been left with valuations not living up to value and losing their hard-earned savings.
Again, I echo the sentiment of Winston Churchill.
The United States is an amazing country with the ability to change, but not until it has exhausted all other options not to. — Winston Churchill
An excellent opportunity lies ahead to invest countercyclical and prime in venture instead. For when the greenfield of technology innovation to serve the world is wide open. Plenty of dry powder is available; it is the “marriage counselor” between the assets of entrepreneurs – ideas – and the assets of limited partners – money – we refer to as venture capital that is, indeed, in dire need of reinvention to produce outcomes the real world cares about.
Eventually, the world will have to wake up from the self-induced sleep of reason.
