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Venture capitalists are like lemmings jumping on the software bandwagon.

I've been a customer of the top venture capital firms, so I know exactly what they do and don't do.

The venture industry is both quite vibrant and quite competitive.

Technology has made it easier for different firms to coordinate their activities with one another, and they don't have to be part of one company. They can get the benefits of scale without the inertia of scale.

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.

Prove to yourself that your business, in micro-scale at least, creates value. If you believe it, you'll find it that much easier to convince potential investors, partners and employees, too.

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.

Many of the best firms historically in venture capital have been multi-sector.

Venture capital is about capturing the value between the startup phase and the public company phase.