From Spaceships and Sagan to Mobile Apps and Zuckerberg: The Limits Of Venture Capital

Josh Lerner writes in MIT’s Technology Review:

But claims that venture capital is a driver of true innovation, or even of positive financial returns to investors, face some hard questions. With the industry facing a hangover from its recent flurry of social-media investing and the disappointing stock-market performance of firms such as Groupon, Zynga, and Facebook, the skeptics have been rarely been as loud as they are today.

Quoting the power investor, Peter Thiel, Mr. Lerner reflects on the state of innovation and investment: “We wanted flying cars. Instead, we got 140 characters.” Citing the concentration of investment in narrow market-categories, the frenzy to invest in fad industries (social media), and the short-sightedness and volatility of public markets, Mr. Lerner argues that venture capital is not the spark of innovation that we think it is.

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2 thoughts on “From Spaceships and Sagan to Mobile Apps and Zuckerberg: The Limits Of Venture Capital

  1. “We wanted flying cars. Instead, we got 140 characters.” – brilliant quote

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