Natural Selection

Darwin needs to do his job for VC to function properly. Allowing mediocre businesses to fail is important. Propping them up doesn’t serve anyone well (including talented Founders who could go on to build something better).

So if you’re a pre-Seed/Seed Investor, have you modeled a 50–75%+ failure rate through Series B? For some funds it should be even higher.

But the recent super cycle convinced too many sources of capital and too many Founders to keep going even when there was compelling “anti-proof” about what they were building.

Time to get back to the basics….