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Venture capitalists should maintain a disciplined mechanical process for investment and exits to avoid getting caught up in market psychology.
There's a huge problem with the venture industry: there's too much money. The industry invests $150 to $200 billion a year, but to make returns work, it needs to give back $700 to $800 billion a year.
In my opinion, investing in venture is a return-free risk. More money doesn't create more great ideas or founders.
Venture capitalists should maintain a disciplined mechanical process for investment and exits to avoid getting caught up in market psychology.
Venture capitalists should maintain a disciplined mechanical process for investment and exits to avoid getting caught up in market psychology.
The venture capital ecosystem can be flattened by fear during downturns, making the idea of starting a company seem ludicrous, which can stifle innovation.