Fundraising continues at breakneck speed. Unicorns are no longer rare, and the size of VC rounds keeps swelling. Deep-pocketed private equity players are also wading in. It seems to me that instead of spending millions, or billions, in the pursuit of unicorns that could emulate the "winner-takes-all" technology platform near-monopolies of Apple and Facebook and the massive capital gains that resulted, VC investors and their LP backers could instead be buying a bunch of empty matryoshka dolls. Bloated by overvaluation, and likely to disappear, leaving just a smile and big losses, since many software-focused tech startups have no tangible assets.
The VC Problem
The VC Problem
The VC Problem
Fundraising continues at breakneck speed. Unicorns are no longer rare, and the size of VC rounds keeps swelling. Deep-pocketed private equity players are also wading in. It seems to me that instead of spending millions, or billions, in the pursuit of unicorns that could emulate the "winner-takes-all" technology platform near-monopolies of Apple and Facebook and the massive capital gains that resulted, VC investors and their LP backers could instead be buying a bunch of empty matryoshka dolls. Bloated by overvaluation, and likely to disappear, leaving just a smile and big losses, since many software-focused tech startups have no tangible assets.