V.C. is suffering because there are not enough companies that have got to a big enough stage for them to fund.
There needs to be more put into early stage companies. I meet endless companies in the U.K. that can't easily even get $20k to get off the ground. Yes, we've got SeedCamp, but it only funds 5 or 6 companies a year. There are 1000s of good potential companies in the U.K. alone that can't get this first step of funding. And that's the U.K. which is fairly developed for this and there are lot of countries that this could apply to.
Basically, I think we need several Y-combinator style companies in every country in every industry. I think as people see the returns come into Y-combinator there will be explosion of these companies as there a lot of people can spend $2m/year on a range of outside bets.
There needs to be more put into early stage companies. I meet endless companies in the U.K. that can't easily even get $20k to get off the ground. Yes, we've got SeedCamp, but it only funds 5 or 6 companies a year. There are 1000s of good potential companies in the U.K. alone that can't get this first step of funding. And that's the U.K. which is fairly developed for this and there are lot of countries that this could apply to.
Basically, I think we need several Y-combinator style companies in every country in every industry. I think as people see the returns come into Y-combinator there will be explosion of these companies as there a lot of people can spend $2m/year on a range of outside bets.