Comments on: In the Venture Business, Small Is Beautiful, Charles River Ventures Argues—And Funds Are About to Get Much Smaller http://www.xconomy.com/boston/2009/12/01/in-the-venture-business-small-is-beautiful-charles-river-ventures-argues-and-funds-are-about-to-get-much-smaller/ Business + Technology in the Exponential Economy Sat, 11 Feb 2012 09:14:03 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Angela http://www.xconomy.com/boston/2009/12/01/in-the-venture-business-small-is-beautiful-charles-river-ventures-argues-and-funds-are-about-to-get-much-smaller/comment-page-1/#comment-100120 Angela Sat, 19 Dec 2009 11:10:42 +0000 http://www.xconomy.com/?p=52692#comment-100120 Finding a proper funding service is not that easy. I used to struggle with my capital problems for a long time but finally I went to <a HREF="http://www.smallcapital.co.za/" rel="nofollow">Small Capital</A> and they not only lended me the money I need but they also helped me with great tips to flourish my business. recommended for every small business Finding a proper funding service is not that easy. I used to struggle with my capital problems for a long time but finally I went to Small Capital and they not only lended me the money I need but they also helped me with great tips to flourish my business. recommended for every small business

]]> By: Krassen Dimitrov http://www.xconomy.com/boston/2009/12/01/in-the-venture-business-small-is-beautiful-charles-river-ventures-argues-and-funds-are-about-to-get-much-smaller/comment-page-1/#comment-95534 Krassen Dimitrov Tue, 01 Dec 2009 23:11:29 +0000 http://www.xconomy.com/?p=52692#comment-95534 Well, that's just the wrong way to look at it. The innovation sector as a whole can take in more than $30B and still produce the returns that are expected if the majority of VC were not so clueless. The U.S. economy is $14T; to say that innovation can produce only $100B in created value per year, and that's it, is stupid. Remember, historically tech innovation is the only consistent value creator in the economy. Who is this guy to say that you can't get for example 2% ($280B) of GDP in value creation from the tech sector? Also remember that U.S. (at least used to be) an innovation leader, where its tech companies would usually become global players. Value created in the U.S. innovation sector that equals 1% of global GDP would translate into $400-500B per year. What is so impossible in that number, other than some VC saying so, without any factual justification? The simple truth is that there is really no shortage of innovative ideas or enterpreneurs: be it in Universities and Institutes, or in garages and workshops. The problem with the low aggregate exit value comes from the fact that majority of VCs are incompetent and they either pick up the wrong ideas (example: GreenFuel Technologies or M2E Power), or, when they pick the right idea/technology they destroy its value through incompetent meddling (example: NanoString Technologies) Well, that’s just the wrong way to look at it. The innovation sector as a whole can take in more than $30B and still produce the returns that are expected if the majority of VC were not so clueless.

The U.S. economy is $14T; to say that innovation can produce only $100B in created value per year, and that’s it, is stupid. Remember, historically tech innovation is the only consistent value creator in the economy. Who is this guy to say that you can’t get for example 2% ($280B) of GDP in value creation from the tech sector? Also remember that U.S. (at least used to be) an innovation leader, where its tech companies would usually become global players. Value created in the U.S. innovation sector that equals 1% of global GDP would translate into $400-500B per year. What is so impossible in that number, other than some VC saying so, without any factual justification?

The simple truth is that there is really no shortage of innovative ideas or enterpreneurs: be it in Universities and Institutes, or in garages and workshops. The problem with the low aggregate exit value comes from the fact that majority of VCs are incompetent and they either pick up the wrong ideas (example: GreenFuel Technologies or M2E Power), or, when they pick the right idea/technology they destroy its value through incompetent meddling (example: NanoString Technologies)

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