The traditional model of the venture is close to collapse

Chris Sacca, an angel investor in Friday, announced that his investment company, Lowercase capital, had officially entered the operating model, according to foreign media reports, and the company's credo was that Chris Saka had almost collapsed.

A technology company established before 10 would require about $1 million trillion in money to buy hardware and software, offices and networks and media spending, the semi said in a statement. However, it is becoming easier and cheaper to build an Internet service company.

"Many traditional venture capital funds are unwilling to acknowledge this reality and have to cut back on the total amount of money," the semi said. Why is that? In principle, the returns that venture capital funds can achieve are positively correlated with the amount of investment they invest in, and there is no reason to shrink their size. But more and more risk investors find that, when the capital is injected into the emerging enterprises, the gains are not always proportional to the income, and the conflict between investors and enterprises occurs repeatedly. As a result, investment funds are returned, and investors, businesses and users are affected. ”

Lowercase capital is aware of the changing investment situation in the technology industry and will no longer simply invest and manage its business, the company said. "We will keep a close eye on the user experience and customer satisfaction of the enterprise's products, as Paul Graham, a well-known angel investor, Paul Granme, ' Looking for what people really need '. Lowercase capital's strategy is to provide companies with relatively small sums of money, but at the same time focus on their business and development, ultimately to create revenue for all parties. We provide home page design, product planning, search and partnership to provide professional support to emerging enterprises. ”

The model of venture capital has collapsed?

The discussion of whether the venture capital model has collapsed has been going on for quite some time. Last year, Steven Kaplan, a professor at the University of Chicago, Steven Kaplan with Harvard Business School Josh Josh Lerner, saying that "The venture capital industry has not collapsed". But many in the industry hold the opposite view. Chris Dixon, the famous investor, said last month that the traditional venture-capital model still Chris Dickson in a variety of examples such as corporate restructuring