Live data from Hacker News

VC isn't VC anymore

anildash.com

221–223 of 223 posts

Re: VC isn't VC anymore

#221
Reminds me of this post from earlier in the year (from a VC, Michael Dempsey) titled "VC-Backed Startups are Low Status"[0], which I'm inclined to agree with, having been in the industry for over 15 years now and witnessing how the vibe shifted from "techies are good" to "techies are bad" over this period.

I graduated into a tech workforce that was a celebrated part of society (i.e. "high status") to one that is decidedly not (and I'd say it's grown to deserve this disrepute).

The first main wave of the vibe going negative (at least at the heart of the 'imperial core' in the SF Bay Area) was around ~2013/14 (the 'tech co bus protests'), then again around ~2018 ("don't call SF General 'Zuck General'"), and now it's kicked into a much higher gear during this current AI wave. It spans big tech co's to startups to everything in between. Anil's post speaks to this too, when he says:

> Politicians and media still look at VC as if it works like it did 10 or 20 years ago, and cheer them on ... when their primary goal is concentrating power and wealth

It's not just VC per se, but the 'managerial class' within tech rotted into mostly career-climbing types that were a far cry from impassioned creative technologists aiming to 'do good' with tech. It became the same status-bound competition you'd find on Wall Street and elsewhere (which the Dempsey post describes well).

I have a mentality and overall life orientation that is aligned with Anil and celebrates the open web, public interest technology, and so forth, and many of my peers in tech (often from elite universities and backgrounds) look at me as a strange creature. I'll bring up the need to increase awareness about Public AI and boosting AI literacy among citizens, and I hear, "Wow, you like, really care about like, people. That's so interesting." It's unbelievable, I wish I was kidding.

Thanks for writing this Anil. I wish for better days.

[0] https://mhdempsey.substack.com/p/vc-backed-startups-are-low-...

Re: VC isn't VC anymore

#222

The article does not mention or address an important contributor to the current state of VC. The increase in regulations, post GFC, made it impractical/impossible for small companies to go public. And, until recently M&A was actively avoided. The alternative was to stay private longer offering higher returns for private investors wanting to capture a (previously non-existent) illiquidity premium. The co-dependency of…

Sarbox is a drag, but another issue is the rise of the securities plaintiffs bar. Public companies are subject to Rule 10b-5 claims on each statement they make because the market can "rely" on that statement. This means every public interview, press release, and even tweet needs to be scrutinized by lawyers or risk subjecting the company to expensive lawsuits because the founder's "misstatement" moved the stock price by 45 cents.

I've never run a public company, but my bet is the mechanical filings, etc are way less of a burden than shareholder litigation.

Re: VC isn't VC anymore

#223
post #81
post #73

Earlier quoted context omitted.

Of course it can fail, just like the AI circular investment moves can fail just like the Soviet Union failed. Too much decisive power in too few hands, disconnected from reality, disconnected from competition, disconnected from outside community criticism. It fails open loop. A lot of money can temporarily buffer the failure, but already we see world wide inflation and interest rate increases from the open loop decis…

or it can not fail, like North Korea

I don't have a sufficient understanding of how North Korea operates to assess that - too much my information about North Korea is propogandistic sound bites. I do know they have had famines in decades past, and don't think they have them now, so that suggests their economic/industrial strategies are a least passing a minimum threshold of being connected to reality.
Post reply on HN