In some ways, yes.
For the vast majority of venture capitalists have no idea how to detect nor find an outlier of innovation, for their investment thesis, stuck in the sub-priming promulgated by excessive self-induced collusion, deal fragmentation, and deal syndication is fundamentally incompatible with finding outliers. Hence 99.4% of venture capitalists stare blind on reducing the downside risk from valuation commoditization of downstream innovation, desperately portraying to be the best thing since sliced bread.
No different than how on the flip-side, many ordinary people chase the “gold-rush” of unchecked technology while proclaiming to be entrepreneurs, but upon closer investigation attempt to sell nothing more than downstream innovation to a greater-fool investor as upstream. A predicament exacerbated by the overwhelmingly subprime fishing-net deployed by venture capitalists today.
I lightheartedly correlated the marriage between subprime venture capitalists and wannabe entrepreneurs in 2011 with a woman who picks a man for his money, deserving of a man who picks a woman for her boobs.
The key, of course, that the stance of neither party produces venture style returns to change the world for the better. Many of these “marriages” between 99.4% of venture capitalists and wannabe entrepreneurs extract precious money and valuable opportunity from society. The kiss of death to innovation derived from its ballooning false positives.
Outliers are people who buck the trend and develop new and higher normalizations of truth, unaccepting of the norms set before them. Investors can only find those people with a similar aptitude for the denial of the many make-believe truths as we know them. An investment interest unlikely to come from a syndicate of investor socialism. When an outlier entrepreneur and outlier investor “marry,” the value and valuation of marriage are shared by both, for the upside is. Pricing will be unique and a function of the perceived ability to execute. Not at all in correlation with deals from a marriage of subpriming.
So, yes. The wannabe entrepreneurs are desperate to marry the many subprime investors of their fancy. In the same way, and despite prudent advice to the opposite, powerful men with money will continue to marry women just for their looks. The only savior to this charade being a handful of outliers more discriminate in who they marry, and by their stance and hard-earned success continue to pull into their wake a slip-stream of subprime commodities. A slipstream that erodes the potential for false negatives of innovation we can live without.
We must build better operating-systems for humanity, with an arbitrage merited and awarded only to trace the nature of the societal assets we aim to improve. We must improve the method by which venture capital pursues outliers, systematically. So the exhaust of venture capital’s subpriming no longer erodes the pursuit and integrity of real innovation.