Michael Arrington introduced us all to Marc Andreessen’s blog - the co-founder of Netscape and currently the co-founder of Ning among many ventures. I was really amazed to read his blog posts about Venture Capital-ism and VC’s in general.

Absolutely a MUST READ material for any startup considering raising venture capital money. Check out "The truth about venture capitalists" (3 parts):

http://blog.pmarca.com/2007/06/the_truth_about.html
http://blog.pmarca.com/2007/06/the_truth_about_1.html
http://blog.pmarca.com/2007/06/the_truth_about_2.html

My favourite quote from these posts comes from the last paragraph of the third part:

And that's why, from where I sit in Silicon Valley, there are probably 200 venture capital firms within 20 miles with likely over $20 billion of capital at their disposal chasing a very small number of good potential investments, despite terrible average returns for the asset class over the last seven years.

I love this country.

I wonder how far I’m now sitting from the closest VC firm offices right now! Maybe about twenty miles... And there are considerably less than 200 VC firms in my region. Most probably less than 10!

Labels: Andreessen, Capital, Marc, Venture