Why Are VCs So Negative?

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Because venture capital has turned predominantly subprime, by its uniform micro-private-equity risk profile deployed in the hopes of detecting non-uniform outliers of innovation. An incompatible risk-in risk-out profile guaranteed to yield poor outcomes.

Hence by deploying deflated and delayed risk of subprime, the chances of producing prime venture-style returns have significantly diminished. A subprime risk profile can, by principle, only attract subprime innovation. And wearing the ugly spectacles of subprime, VCs get grumpy from the mind-numbing work of having to weed through the fog of subprime deals in an ill-fated attempt to find the improbable diamond in the rough of prime.

Using the wisdom of Albert Einstein: The risk profile determines what can be discovered.

Only prime risk can successfully pursue prime innovation that produces renewable socioeconomic value. And many a venture capitalist now have painfully come to find out that a mere business degree with buckets of money to spend does not make one a better venture capital investor than a person right off the street who has lived a life of prime risk.

Let’s refer to this debacle as the inevitable natural selection of investors by risk atrophy. They were warned, by me, a long time ago.

Discuss

Online discussions are so old-school and ineffective. Schedule a one-on-one online conference with Georges instead.

Georges van Hoegaerden
Georges van Hoegaerdenhttps://www.method41.com/georges
Georges is the Founder and Managing Director of method41. From analyzing the workings of policy, capital, and innovation, Georges noticed how these siloed constructs are woefully incompatible with the principles nature deploys to produce regenerative performance. With humanity stuck in a fabric of its own making, Georges set out to reinvent the operating-systems of humanity to fix the theory that determines what humanity can discover, aiming to fundamentally improve human adaptability to nature's entropy.
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