A vast entrepreneurial ecosystem is dedicated to the proposition that venture growth needs venture capital (VC). This may be the most wasteful idea in venture development – wasting both financial capital and human potential.
Risk of VC Failure
Contrary to the assumption of a VC shortage, there may actually be too many VCs. Experts estimate that only about 2% of VCs (about 20), are said to earn about 95% of VC profits. Most VCs do poorly because early stage VCs fail on 80% of their ventures and there are few home runs to offset the many failures. Marc Andreessen, a Top 20 VC, notes that
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