What's worse is that VCs and Angels in Chicago are perhaps, to an extent, more clueless about building technology businesses. Sure, money here is not as plentiful but I still see frivolous 'apps' being touted as businesses and getting accepted into incubators.
Perhaps it is the whole VC model that is to blame. By definition, VCs require companies to 'exit' through either acquisitions or IPOs. Their incentives are not aligned with building strong businesses that can thrive for years on end, but rather businesses that might 'seem' attractive in the next 3-5 years so as to attract potential acquirers. Only if a business shows unprecedented levels of growth do they let it do it's thing and thrive (Facebook, Google etc.).
Since 'social', 'mobile' and 'big data' are the buzz words these days, VCs are pouring money into these ridiculous and frivolous ideas in hopes of an acquisition. It's only fun while it lasts and I see a world of hurt coming their way.
What's worse is that VCs and Angels in Chicago are perhaps, to an extent, more clueless about building technology businesses. Sure, money here is not as plentiful but I still see frivolous 'apps' being touted as businesses and getting accepted into incubators.
Perhaps it is the whole VC model that is to blame. By definition, VCs require companies to 'exit' through either acquisitions or IPOs. Their incentives are not aligned with building strong businesses that can thrive for years on end, but rather businesses that might 'seem' attractive in the next 3-5 years so as to attract potential acquirers. Only if a business shows unprecedented levels of growth do they let it do it's thing and thrive (Facebook, Google etc.).
Since 'social', 'mobile' and 'big data' are the buzz words these days, VCs are pouring money into these ridiculous and frivolous ideas in hopes of an acquisition. It's only fun while it lasts and I see a world of hurt coming their way.