Fred Wilson on #rethinkVC

Fred Wilson's talk on #rethinkVC at Grind Spaces in NYC May 8th 2012

  1. Flow of $30 billion invested in VC each year is not getting a good return. Same ol. Not getting a good return overall @fredwilson #rethink
  2. VC market should put to work only half of $30B i.e. $15billion. Math problem @fredwilson #rethink
  3. Will crowd finding create problems for Venture Capitalists? #Rethink VC @fredwilson
  4. $300 B = 1% of other funds if got into crowdsourced funding. Ticking bomb? @fredwilson "it's bad for VCs, good for entrepreneurs" #rethink
  5. Crowdfunding is a threat to venture capitalists, but great for the economy, entrepreneurs and startups via @fredwilson #rethink
  6. Venture capitalists raise large pools of $ every 2-4 yrs. Then allocate. Then do it again. Aggregate, allocate @fredwilson #rethink
  7. @fredwilson: Options? Become #1: entrepreneur, #2 a blogger, #3 more selective. Stop the herding mentality #rethink
  8. @fredwilson I'm already a blogger, entrepreneur but now I need to be more selective. @justinjmoses do you think he is referring to us or vcs
  9. one reason why VCs can't generate returns? they're momentum herd investors - "they chase every hot thing" @fredwilson @grindspaces #rethink
  10. @fredwilson: option #4: Shrink. Stop raising from institutional capital #rethink. #5 Leverage crowdfunding capital
  11. @fredwilson: #rethink idea: Set-up shop on top of crowdsourcing . Put less money upfront & the rest via crowdfunding
  12. RT @wmougayar: @fredwilson "Everybody involved in the VC business should #rethink it. I am"
  13. VCs need to become more selective or experts in a very small category (one option) -- @fredwilson #rethink
  14. VCs should stop investing institutional capital - @fredwilson (exactly!) #rethink
  15. @fredwilson: "Current situation isn't helpful. Bad VCs are still getting lots of money." #RETHINK
  16. Q. Why is inst. money tolerating bad returns? @fredwilson: it's due to low (4%) allocation model #rethinkvc
  17. Q. What do u look for? @fredwilson: right people right idea packaged right way in right time for market. linkages are v important #rethinkvc
  18. classic end to @fredwilson's talk. On corp venture cap: "I think it's dumb. It's dumber than dumb. It's the dumbest." #dropsmicandwalksoff
  19. Go 2 kickstarter back a project, go 2 angel.co look 4 startups to fund, go 2 petridish.org.fund research/science @fredwilson #rethink

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William Mougayar

Serial entrepreneur & CEO/founder. Coach to startups on marketing & strategy. Founded 3 companies, sold 2. Working on the next thing. Eqentia, Engagio, Influitive, Hewlett-Packard, Cognizant. Author, consultant, professional speaker, thought leader.

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