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There's nothing wrong with raising venture capital. Many lean startups are ambitious and are able to deploy large amounts of capital. What differentiates them is their disciplined approach to determining when to spend money: after the fundamental elements of the business model have been empirically validated.

The best early-stage venture capital investments appear obvious in retrospect; however, very few of them are actually obvious when you make them.

I think one of the key differentiators I bring to the table as a venture capitalist is a solid understanding of the public markets and how they operate.

I don't think a lot of people have been entrepreneurial about venture capital.

Many entrepreneurs have shifted their focus to pursuing VC funding as a primary strategic priority instead of concentrating on generating value for their users. This is worrisome because raising capital alone is misleading as a benchmark for success.

Venture capital is always wanting to go up market.

Whatever the potential pitfalls, banks are increasingly enthusiastic about venture capital, particularly in new companies with strong prospects in fields like health care and technology.

So many folks in the venture capital business are sheep that just want to follow the herd. They are momentum investors purchasing highly illiquid investments. That is a recipe for disaster.

There are lots of ways to make money in venture capital, and there are even more ways to be mediocre. The industry has too much money and too many smart people chasing too few great entrepreneurs.