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?
Yesterday, I was an invited guest at an annual “entrepreneurship” event held in Vancouver. The event is an extraordinary opportunity to connect with most of the major figures, leaders, and investors in the entrepreneurship community. It also prominently showcased presentations from a number of the most promising new startups. But the undercurrents in conversations around the room were soul searching questions about the current glut of startup accelerators around North America, and the frothy euphoria and enthusiasm about “entrepreneurship.” Some experienced entrepreneurial investors complained about the air of unreality of it all, and the excess of mediocre companies being cranked out. A very prominent and experienced Vancouver venture capitalist pointed out to me that a glut of Canadian startups only compounds the long-standing issue that Canada could not produce the necessary risk capital even if more of these companies were investment ready, which they are not. A related issues is the waste of government money in these companies. Clearly, the situation is a mess.
Toronto-based classroom education startup Top Hat Monocle takes a contrarian position on students’ smartphones. Rather than insist that they put them away, which we all know is a losing proposition, the company uses the devices to drive engagement and participation. Today, the company has beefed up its executive team, announcing the addition Ralf Riekers as its new Chief Financial Officer and Malgosia Green as its Chief Product Officer.
In this post from PandoDaily, Francisco Dao hits the mark. Max Marmer of Startup Genome…