Precisely why the VC market is a pyramid schemes for managers and portfolio companies. Forcing the deployment of money is the reason we’re seeing so many poor investments deployed by technologically-illiterate, Harvard new grad VCs. And it’s been them for a decade.

The current VC market as mentioned has been riding on an industry growth curve. Tech wise, the old models of SaaS are being “disrupted” on the daily, but the justification is tech rather than tech enabling new ways of competing on an industry’s incumbent business theses.

FDEng are an expesive method of distribution for a business searching for PMF. A glorified consulting shop for dropout, inexperienced early 20 somethings never exposed to an industry. But the huge capital vehicles in VC enabled this behavior.

We’re now just keeping the software industry employed rather than solving real problems. It’s not just founders not fitting in an industry, the investors don’t fit either. This was the opposite a few years ago:

someone with some industry knowledge and experience finds an investor who’s operated in an industry and can help with initial sales and advice. See ScaleAI. In the last 5 years, instead of betting on companies solving direct business problems, folks are betting on innovating tech