So many people working in VC went straight into it after Stanford without ever starting a company, like it’s investment banking or something. Maybe the VC industry will shrink along with the startups, or at least the unhelpful partners.
The difference in risk is orders of magnitude.
These investments can not have terms that are as one-sided as some have specialized in, plus it becomes less realistic for an entrepreneur who can properly leverage $10 million to be served by capitalists who have to borrow $10 million to do it.
The truly success-bound entrepreneur will have a much less limited upside by leveraging the $10 million from someone who is actually worth lots more than $10 million instead.
I expect the herd will be thinned considerably.
Kind of like the difference between somebody visiting Miami, renting a Lamborghini which is almost out-of-their reach, then being seen having their car parked at South Beach by a valet. As compared to a well-retired resident owning half-a-dozen European performance cars in their garage. They only drive one at at time anyway, just like everybody else.
Wasn't it Buffet that said when the tide goes out real quick you see who wasn't wearing anything covering their bottom?