Net Views: Seed investing is broken

Net Views — Thu, 13 Nov 2008 11:33:05 -0500

"The Business Model/Economics of traditional VC investing will not be fixed until the Seed investing level is fixed. The Business Model/Economics of traditional VC investing will not be fixed until VC firms truly understand the concept of vertical integration and division of labor.

The Business Model/Economics of traditional VC investing will not be fixed until traditional VCs understand that 2 separate entities must be established: (1) a Seed Fund which works with and supports the Entrepreneurial Community and (2) a traditional Venture Capital Fund which brings companies to an equity event.

Stop trying to force the needs and opportunities of Seed level investing into the rules and requirements of traditional VC investing and vice versa."

– Elliott Dahan, "The VC model is broken", VentureBeat