It’s the golden age of the entrepreneur, but the people who fund them aren’t happy about it. At yesterday’s Kauffman Foundation Fellows summit in New York, a trio of veteran limited partners who invest in venture capital firms spent an hour taking questions from a crowd of 125 budding VCs and entrepreneurs, tossing out buckets of cold water along with their encouragement. What they want for Christmas: fewer VC firms, smaller funds, and saner valuations.
During the past 15 years, LPs put $20 billion each year into VC, about four times the $500 million committed to venture in total during the decade 1985-1995. If venture is going to return to the cottage industry it once was, the LPs will have to scale back their investments. This year may go down as the year LPs finally blew the whistle on the venture capital model. Pretty much every one will say publicly or under their breath that the model is broken.
To read the full, original article click on this link: Message To Venture Capital: Keep Shrinking - Forbes
