When I finished reading Sam’s excellent column this week on the end of venture capital as we know it, I had one question: What do the changes mean for entrepreneurs?
So I spent some time this week thinking about the subject and grilling Sam and others about it. I’ve learned a lot.
First, a recap of the column: In 2,000 words, Sam summarized his view of the seismic shifts underway in private tech investing—and, as usual, he bucked the conventional wisdom. The general sentiment in the industry has been that funds are getting bigger in a FOMO race against the massive capital guns of SoftBank and Tiger Global Management. Sam argued that the funds are getting bigger in response to changes in the investment opportunities themselves, which are becoming less risky and lower margin.