Polluted by people with money posing as smart money managers.
They are not intentionally trying to deceive anyone, they just don't belong in the industry.
Many new venture funds were started by smart engineers, marketers or business professionals that provided tremendous value to successful public and private companies. They understandably took that money and wanted to put it to work to help other entrepreneurs succeed. Don't get me wrong, some have done very well.. but many more have failed miserably.
The challenge is that Venture Capital and what it was meant for has been changed and the definition of "technology" is now associated more with websites than actual technology like data infrastructure, microchips and operating platforms.
Venture Capital was meant for businesses that require significant capital to build infrastructure, create real intellectual property or acquire tangible assets with quantifiable value.
Best intentions aside, what does this really mean for the industry?
It means that the funds with real returns and true financial management experience are battling for investment dollars, making it harder to put the money in the hands of those that can do more than just write a check.
The real Venture Capitalists understand that it is about much more than the money; it is about the support, the network and the ability to spot real management talent.
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