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Georges' prediction for Venture in 2011

Here is Georges’ prediction for the performance of Venture Capital in 2011:

“With negative ten year performance and a pipeline stuffed with subprime deals Venture Capital will continue to shrink and gravitate down to the 35 of 790 VC firms that make any consistent money for Limited Partners, with perhaps a handful of new VCs taking the place of a few aging firms. In violation of rudimentary free-market principles, Venture will remain - by economic principle - unable to scale to the massive opportunity of an 80% technology adoption greenfield.

And with corporates disproving the many cyclical and economic claims of Venture Capital underperformance during the same period, Limited Partners must take a closer look at the deployment of investment risk, the experience of its operators and the way it often ignores groundbreaking innovation.

Technology innovation remains a cash cow for those Limited Partners with the investment discipline and investment model that can locate and spur the Social Economic Value the public will trust again.”


Georges van Hoegaerden

P.S.: his last year prediction about Venture in 2010 also proved true, despite similar self-serving delusion of positivity from Venture Capitalists in the media then.