Venture capitalists are like lemmings jumping on the software bandwagon.
Sentiment: NEGATIVE
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.
Venture capitalists buy minority positions in young companies they think will grow quickly; buy-out investors buy most or all of companies they think can be turned around by fixing a few basic things.
I don't think a lot of people have been entrepreneurial about venture capital.
Venture capitalists certainly create value for themselves, but they also singularly create value for the rest of the world.
The way to really scale a venture firm is with software.
As I became a venture capitalist, it's almost like I went to the dark side for a while.
Back in the late 1990s, venture capitalists got very excited about the Internet. A whole lot of money was poured into some companies that failed rather spectacularly, and a lot of people lost a lot of money.
Every venture capitalist says at some point, 'I wish I could run this company myself' - to be the entrepreneur instead of the investor.
First of all, in terms of investment in Internet-related developments, venture capitalists - once burned - are now very cautious and are investing in areas that actually make business sense.
Venture capitalists don't pay attention to you unless you have an app or a widget.