What VCs Are Worrying About

A survey of VCs by Polachi Inc. has been making the rounds of the internet the past couple days. I was asked to participate in this survey but did not (not for any reason in particular).

I looked over the results (click on that link above to see them) and this slide caught my attention:

Surprise, VCs are not worried about deal flow and the management teams they work with, are a bit worried about their portfolio, and are a lot worried about exits.

We've talked about this issue endlessly here on this blog and elsewhere. The problem with the VC industry is that there is too much money in it, too many portfolio companies, weak venture firms, and a tepid exit environment.

There is no lack of good opportunities, no lack of talent (both entrepreneurial and management).

Nothing is wrong with the VC business and the startup ecosystem that a few years of weak fundraising can't fix. And I think we are seeing that and will continue to see it.

But the headlines like VCs Losing Confidence in “Broken” Industry overstate the issues in my mind. The VC business is not broken. Some of the participants in it are.