A Broken VC Model
There's been a lot going on in technology industry during the last 2 wks. Yesterday, GOOG announced a series of 'new' hardware, profound its ambition to build an ecosystem like AAPL one and trumpeted its eagerness in AI; Many VCs and Tech Founders decided to proclaim their supported presidential candidate publicly on social media; Rumors of TWTR acquisition are circulating on and on; SpaceX, then Blue Origin, and followed by Boeing, sequentially addressed their bold Mars colonization plan; FB, AMZN, MSFT & GOOG sequentially reported more investment into AI and cloud computing infrastructure to beef up their competitiveness; Last but not least, FB admittedly 'copied' more features from SnapChat ("Snap") and WeChat to its IG, WhatApp and FB Messenger.
With all that happened, I now have more concerns in the future of what made this country great: Innovation. Maybe, a solicitude, or perhaps this matter dwells to the extent of the mature stage of the business cycle. But as you may see, the 'Big Boys' are now going after each other to grow revenue and market scale, instead of tackling new problems and exploring new territories. This is very dangerous to the future of US economy and our worldwide technology leadership. Under the increasing pressure from shareholders and investors, corporates, without compassionate, choose an easy route chasing and mocking its rival for subsistence. Whilst China’s consistently being accused of imitating business role models, replicating ideas, and manufacturing counterfeits by the States, let’s see what just dawned in our tech world today (The new FB MarketPlace yet ripped a page from Craigslist, AMZN, and Tencent). We may debate those actions are one form of disruption to the concurrent model but are they? Today, entrepreneurship is still the hottest agenda in Silicon Valley, verily across the 50 states, but is it really about entrepreneurs pursuing their dream to solve problems, or building a company to get higher valuation? Theranos, a very good example. VCs with zero profession in medical field poured millions and millions of dollars into a concept, now proven to be false. What is it all suggesting to you?
Perchance we have a problem in our current political economy and venture capital model, not rewarding entrepreneurs upon their contribution toward the society but singularly measuring their success in monetary metrics (revenue, profit, and user acquisition). Reviving this problem is a definite commission afore cultivating an affliction to our future.
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