UPDATE: This post from February 21, 2016, is being republished in the light of the announcement…
My biggest complaint with venture capital and the current entrepreneurial landscape is the lack of Big Ideas— the superficiality of the technology sector. “We were promised flying cars and we got 140 characters” –Peter Thiel. We also got corporate greed masquerading as “the sharing economy.” Many other well-known observers of this industry share my complaint. Some argue that these Big Ideas are too big for private investment, and can only be funded by governments with the resources and vision to accomplish such large long term projects. I disagree.
This is the best info-graphic I have seen on the historical evolution of venture capital, from the early days of Arthur Rock to the current trend of “platform” investors offering the “everything in a box” approach to entrepreneurial investment. The evolving venture capital models are overlayed onto a trend graph of the cost of startups contrasted with the number of startups. At first glance one might accept the now common refrain that traditional “venture capital is dead.” When I began my career in Silicon Valley, the typical entrepreneurial growth company needed $5 to $10 Million dollars to launch itself. Today, the argument is that a promising company can be started on $5000 or less, and competitors eager to serve this new market have mushroomed. But is this really the future?
Maybe three years ago, I recall hearing something about a “nuclear fusion” company starting up in Burnaby. In my mind, the thought of a nuclear fusion company in Burnaby was outlandish and preposterous. Growing up in southern California, and later northern California, I had grown up close and personal with the Space Program, and nuclear physics at UC Berkeley Lawrence Nuclear Labs and the super secret Lawrence Livermore National Labs.