Back to basics venturing: part 2

Software

Let’s take a look at the macro affects on venturing in software, which is a very important industry that reflects many of the tensions in the broader economy; suffering from extremist cultural ideology not unlike America. Predatory anti-trust abuses well documented and poorly managed on one side, and freeism sourced from academia and government cultures on the other, neither of which is generally good for the customer, broader economy, or the majority of entities involved.........

The venture capital arms race

In recent years institutional capital has reacted by throwing more capital at the problem seeking the one big win out of ten, driven not by market needs, but rather asset allocation at large institutions and protectionism, forcing other markets around the world to react in an ever growing venture capital war reminiscent of the cold war arms race. Far too many of the wrong ventures have been funded with far too much capital for the wrong reasons; regional economic development mandates, political ideology, and few options for elephants. You can see a piece here on the macro VC math problem by Fred Wilson......

Go here to read to part 2