Jan
10
“The new model is: to start a very small fund; to include a significant amount of the general partners own money; to make small investments in capital efficient businesses which can become profitable early and with no more than a couple of million dollars; and to pay the general partner exclusively with carried interest after the principal have been returned to the investors. Such startup opportunities exist and are ignored by the big fund coupon clippers. If you can find such a fund, with good solid partners, you can still make a (smaller) investment with a reasonable expectation of an appropriate return.”
this is spot on
The Twilight of Venture Capital
(via fred-wilson)