Wired article on the harm caused to innovation by Blitzscaling

[Bernard Murphy]

…two paradoxical questions suggest a growing disconnect between the priorities of VCs and entrepreneurs. First, why has the number of seed funding rounds—the entry point for most entrepreneurial journeys—declined so sharply over the past five years, despite the fact that the cost of launching new ventures has never been lower? And second, why are so many companies still unprofitable at IPO, despite the lengthening gestation period from first VC funding to exit?

'Blitzscaling' Is Choking Innovation—and Wasting Money

Opinion: VCs are making bigger bets on fewer startups. It's this unconsidered, money-slinging strategy that led to Uber's and Lyft’s dud IPOs.

www.wired.com

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