TheFunded.com Open Letter
Posted by Anonymous on 2009-04-30
According to one of the most visible venture capitalists, Fred Wilson, the math of venture capital does not add up, and limited partners are starting to take notice:
"Yesterday Albert and I visited one of the investors in our fund. The good news is they are happy with the job we are doing. The bad news is they are frustrated with the venture capital asset class."
Fred writes about the "math problem" in his blog. While the post is interesting, the comments by dozens of other venture capitalists are more insightful. It looks like Fred has publicly announced that the reckoning is underway, and everyone agrees that the numbers don't add up anymore.
If only these people read TheFunded, they may have figured this out months ago. And... if the "math" doesn't add up for VCs, it certainly doesn't add up for most entrepreneurs, either.