A meeting with a well-known startup investor started and the talk somehow pivoted from seed-seeking startup into talking about the macro view of venture capital and how it doesn’t actually make sense. Or maybe it does make sense? Guess depends on your point of view. “95% of them aren’t profitable.” Clarification as to what that actually means: 95% of VC’s aren’t actually earning enough ROI to justify the risk their investors (LP’s) are taking. Following is the attempt to reconstruct the arguments leading to this hard-to-grasp realization of an industry so often idealized from the outside. Read More>>