Saturday, February 27, 2010

Troubles with Venture Capital

Probably you’ve already noticed that startups are not what they were. For the last decade there were few if any successful stories. According to editorial article in MIT TechReview: “Funds launched in 1996 and 1997 have seen returns of 80 to 100 percent on average, according to Cambridge Associates; those launched in 1999 and 2000 have lost money. Since then, many have returned less than zero, and only recently has the industry showed signs of life.”

You’ll ask what’s wrong with it? I don’t know, probably the market is waiting for the next “big jump” or the world’s fed up with all the @innovations that are actually not. I believe startups should be smarter than facebook and twitter clones.

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