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The venture capital (VC) industry is facing criticism for shifting its focus from investing in potential ideas to demanding proof of success before committing funds. This change is attributed to the aftermath of the 2021 web3 boom and subsequent market crash, which led investors to become more cautious. Critics argue that many VCs now act more like investment bankers, seeking validation from peers and bigger investors rather than genuinely supporting company building. The ongoing bull market in AI is also influencing VC behavior. Some blame 'crypto bros' for ruining the startup ecosystem, and there are claims that low-tier VCs have a 'negative edge' without private deals.
If I'm being completely honest these low tier VCs and angels are so washed up that if you take away their private deals they would have a negative edge. They try so hard to justify giving them asymmetric upside in return for their shekels, but the reality is that they're… https://t.co/RPZKn6RDUs
many VCs say they're in the company building business, but actually act like they are investment bankers, laundering pedigrees and investment theses to other, bigger, hopefully extant investors. it can work -- in bull markets. still a bull market in AI !
Very true but at the same time this forces founders to make their ideas work. I blame crypto bros for ruining the entire startup ecosystem. In the 2021 web3 boom , all you needed was some fancy website, and VCs would fund you. After the market crash, investors got smarter +… https://t.co/Ut3WFpolNs