Comments on: Fear of failure spreading to Silicon Valley? http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/ Nic Brisbourne's view from London on venture capital and exploiting change in technology and media Sat, 11 Feb 2012 20:08:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: High Availability Asterisk Voip Platform By Silverstreet … http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3997 High Availability Asterisk Voip Platform By Silverstreet … Tue, 02 Dec 2008 19:04:54 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3997 [...] Fear of failure spreading to Silicon Valley? | The Equity Kicker [...] [...] Fear of failure spreading to Silicon Valley? | The Equity Kicker [...]

]]> By: nic http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3943 nic Wed, 26 Nov 2008 09:28:36 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3943 Thanks for the comments people. A couple of responses: 1) I agree with Fabio and Andy that results are an unreliable guide to ability and it is far better to look at what was actually done (where possible). Pay on results by all means, but judge on process. 2) As to how Judy explains the change, it is along the lines that Andy and Warren intimate. The VC industry grew too big too quickly from 1999-2000 and got used to quick returns (a problem exacerbated by some of the web2.0 successes) with the result that there is less experience of building great companies over time and less tolerance for short term problems. The result of this is less confidence (ability?) amongst the VC community in judging whether a previous failure is an indication of future failure or not combined with lower tolerance of mistakes in assessing entrepreneurs. I would agree with this to an extent, but with the caveat that some funds are much better than others. My guess is that a lot of capacity will come out of the market (i.e. there will be less VCs) and that might go some way to fixing this problem. Thanks for the comments people.

A couple of responses:

1) I agree with Fabio and Andy that results are an unreliable guide to ability and it is far better to look at what was actually done (where possible). Pay on results by all means, but judge on process.

2) As to how Judy explains the change, it is along the lines that Andy and Warren intimate. The VC industry grew too big too quickly from 1999-2000 and got used to quick returns (a problem exacerbated by some of the web2.0 successes) with the result that there is less experience of building great companies over time and less tolerance for short term problems. The result of this is less confidence (ability?) amongst the VC community in judging whether a previous failure is an indication of future failure or not combined with lower tolerance of mistakes in assessing entrepreneurs. I would agree with this to an extent, but with the caveat that some funds are much better than others. My guess is that a lot of capacity will come out of the market (i.e. there will be less VCs) and that might go some way to fixing this problem.

]]> By: nic http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11695 nic Wed, 26 Nov 2008 09:28:00 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11695 Thanks for the comments people. A couple of responses: 1) I agree with Fabio and Andy that results are an unreliable guide to ability and it is far better to look at what was actually done (where possible). Pay on results by all means, but judge on process. 2) As to how Judy explains the change, it is along the lines that Andy and Warren intimate. The VC industry grew too big too quickly from 1999-2000 and got used to quick returns (a problem exacerbated by some of the web2.0 successes) with the result that there is less experience of building great companies over time and less tolerance for short term problems. The result of this is less confidence (ability?) amongst the VC community in judging whether a previous failure is an indication of future failure or not combined with lower tolerance of mistakes in assessing entrepreneurs. I would agree with this to an extent, but with the caveat that some funds are much better than others. My guess is that a lot of capacity will come out of the market (i.e. there will be less VCs) and that might go some way to fixing this problem. Thanks for the comments people.

A couple of responses:

1) I agree with Fabio and Andy that results are an unreliable guide to ability and it is far better to look at what was actually done (where possible). Pay on results by all means, but judge on process.

2) As to how Judy explains the change, it is along the lines that Andy and Warren intimate. The VC industry grew too big too quickly from 1999-2000 and got used to quick returns (a problem exacerbated by some of the web2.0 successes) with the result that there is less experience of building great companies over time and less tolerance for short term problems. The result of this is less confidence (ability?) amongst the VC community in judging whether a previous failure is an indication of future failure or not combined with lower tolerance of mistakes in assessing entrepreneurs. I would agree with this to an extent, but with the caveat that some funds are much better than others. My guess is that a lot of capacity will come out of the market (i.e. there will be less VCs) and that might go some way to fixing this problem.

]]> By: Scott Rafer http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3941 Scott Rafer Wed, 26 Nov 2008 02:33:00 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3941 This is only an indication of the gradual collapse of institutional VC in the Valley. When compensation is all management fee and no carry, this sort of thing is inevitable. This is only an indication of the gradual collapse of institutional VC in the Valley. When compensation is all management fee and no carry, this sort of thing is inevitable.

]]> By: Scott Rafer http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11701 Scott Rafer Wed, 26 Nov 2008 02:33:00 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11701 This is only an indication of the gradual collapse of institutional VC in the Valley. When compensation is all management fee and no carry, this sort of thing is inevitable. This is only an indication of the gradual collapse of institutional VC in the Valley. When compensation is all management fee and no carry, this sort of thing is inevitable.

]]> By: Andy Warren http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3940 Andy Warren Tue, 25 Nov 2008 20:45:25 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3940 It's times like this when the real fear is that the failure is contagious. Suddenly the VC world becomes very superstitious and starts acting like sailors believing that bad omens should be thrown overboard. It's really about how the VCs/Employers view it as potentially impacting their own careers and investments. Repeated failure is obviously not ideal but a one time success can be just as unreliable as a one time failure. Still, if there are plenty of people chasing a few jobs then employers can afford to be more choosy and it's an easy screening process. It’s times like this when the real fear is that the failure is contagious. Suddenly the VC world becomes very superstitious and starts acting like sailors believing that bad omens should be thrown overboard. It’s really about how the VCs/Employers view it as potentially impacting their own careers and investments.

Repeated failure is obviously not ideal but a one time success can be just as unreliable as a one time failure.

Still, if there are plenty of people chasing a few jobs then employers can afford to be more choosy and it’s an easy screening process.

]]> By: Andy Warren http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11700 Andy Warren Tue, 25 Nov 2008 20:45:00 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11700 It's times like this when the real fear is that the failure is contagious. Suddenly the VC world becomes very superstitious and starts acting like sailors believing that bad omens should be thrown overboard. It's really about how the VCs/Employers view it as potentially impacting their own careers and investments. Repeated failure is obviously not ideal but a one time success can be just as unreliable as a one time failure. Still, if there are plenty of people chasing a few jobs then employers can afford to be more choosy and it's an easy screening process. It’s times like this when the real fear is that the failure is contagious. Suddenly the VC world becomes very superstitious and starts acting like sailors believing that bad omens should be thrown overboard. It’s really about how the VCs/Employers view it as potentially impacting their own careers and investments.

Repeated failure is obviously not ideal but a one time success can be just as unreliable as a one time failure.

Still, if there are plenty of people chasing a few jobs then employers can afford to be more choosy and it’s an easy screening process.

]]> By: alan p http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3938 alan p Tue, 25 Nov 2008 13:21:24 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3938 I'll wait for Nic to precis the book then :) I’ll wait for Nic to precis the book then :)

]]> By: alan p http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11699 alan p Tue, 25 Nov 2008 13:21:00 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-11699 I'll wait for Nic to precis the book then :) I’ll wait for Nic to precis the book then :)

]]> By: Benjamin Ellis http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3937 Benjamin Ellis Tue, 25 Nov 2008 12:38:32 +0000 http://www.theequitykicker.com/2008/11/25/fear-of-failure-spreading-to-silicon-valley/#comment-3937 At the risk of pimping a ex-colleague's work, that is really what her book (the innovation gap) is all about. Judy knows how to kick up a stink :). At the risk of pimping a ex-colleague’s work, that is really what her book (the innovation gap) is all about. Judy knows how to kick up a stink :) .

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