Friday
Opinion, Tips/AdviceThe Change the VC Model Needs
The VC model isn't dead, it just needs to be recycled
Is the VC model broken? That’s a question we’ve all asked ourselves at least once during these trying times. But is the VC model broken or is it just in need of some changes?
If you get to think about it, the VC model isn’t broken at all. It just needs some minor tweaks that will allow it to be more versatile during these harder times. Will there be changes coming soon? Well, there better be, or we’re in for a hot summer indeed (not because it’s going to be interesting, but because people are not going to have enough cash to turn on the AC).
Here’s the problem:
Investors need to help entrepreneurs, but they also need to get fair compensation for the value they create.
The Solution:
• New rules have to be established, rules that will allow for more flexibility in both the investing and the returns.
• More intermediate decisions have to be made in order to allow for the aforementioned flexibility.
• Investors and outside consultants should help entrepreneurs as they see fit, in order to make the road to success and easier one to tread.
All in all, the current VC model is lacking, but with some minor changes it could be adapted to fit this new world order.
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Post Tags: Business, Entrepreneur, investment, Model, New world order, Recreation, Start Up
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