VCs Don’t Invest In Ideas

VCs invest in real businesses and the criteria today, even in the consumer internet, is still relatively high. When VCs start funding nobodys based on ideas alone again, its time to cash out and move to Montana.

SiliconBeat looks at the overhang in venture capital because interest rates have led to a general glut of capital, and wonders if all that supply benefits demand…

SiliconBeat: So if you think you’ve got a good idea, you’re marginally more likely to raise more money now.

The problem, and I hope you don’t think it is a problem, is that VCs don’t invest in ideas. This is one of the greatest myths in the Valley. We would like to believe it as it implies a meritocracy simply not present. Part of the Valley culture is a self-perpetuating desire to be more like Hollywood, where talent is discovered and hits are made. But the only people who get funded on ideas alone are serial entrepreneurs.

Ross Mayfield | Contributing Writer

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