“ [T]here is plenty of investment capital available for Consumer Internet companies that have demonstrated significant market traction in terms of traffic or revenues, but there’s almost none available for what, up until recently, would be considered the sweet spot of true VCs: Seed or Series A startups."
Bill Burnham, The Great Abdication: Consumer Internet, Venture Capital, and Angels
"So what do I think is wrong with funds today? Many of them are too big. They need to make big investments to justify fund size and the associated management fees. But companies can create a lot with much less in the way of resources compared to a few years ago. They don’t need as much money. But they take it anyway…”
Mike Arrington, On Venture Capital
“ Hard” web startup costs zero + VC fund sizes $Billions = Terminal misalignment of goals/incentives