Scott Adams’ satirical take on the new rich kids becoming venture capitalists.
I came up with the Ego Theory of Venture Capital while reading through a list of startups that recently got funded. Maybe it’s just me, but I didn’t see anything in the bunch that looked like a potential winner. Ego has to be behind much of the funding because economics wouldn’t explain such weak investments, even under a venture capital model. Historically, a venture investor hoped to succeed 10% of the time. Now I’m seeing startups that seem, at least to my non-expert eyes – to have something like a 1% chance of success.
Now we have this absurd situation in which society is complaining that the rich have too much money at the same time the rich are begging the poor to take their money. The only condition the wealthy put on the transfer of money is that the poor need to put together some PowerPoint presentations that use the words “social” and “cloud.” Is that too much to ask?
If you think the rich have too much money, stop complaining and do something about it: Start your own Internet company and go get some venture capital funding.