VCs - Tuesday, April 15, 2008 14:36 - 0 Comments

VC Intelligence Is Inversely Proportional To Size Of Their Checkbook

From TechCrunch: Where Have All The Bold VCs Gone?

There has been quite a strong reaction to Paul Graham’s essay asking why there aren’t any more Googles. Paul lays out some clear thoughts, but Eric Schonfeld takes the argument one step further with the positing of “Where have all the bold VCs gone?”

It’s real simple folks. VCs like to wield their checkbooks. When the marginal cost of corporation production goes down, things get a little tough for VCs who rely on having deep pockets. For the longest time, VCs have acted like douche bags. They act like they are the smartest people in the world. Often times this is symptomatic of some successes they have had as VCs. Ultimately, however, they all fall victim to believing that the bigger their check book, the smarter they are. When you don’t have that lever any more, all of the sudden you look pretty dumb. Their power has been removed.

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