In addition, I just that the economics have changed.

On the funding side, there is much more that can be done cheaper these days between open source, offshore, etc. Even with physical good there is just so much more than can be done with little money upfront by partnering, etc. $200,000 from friends and family or angels can go pretty far these days…

On the exit side, the VC model is always looking for the big home run- defensible IP or another “unfair advantage” that can create that $50m revenue company. I think there are fewer and fewer of those “unfair advantages” these days in an industry as fliud as tech is…

Thirdly, the strains alone of growing the 40-50% per year VCs need for their returns kills many otherwise good businesses.

I do think that if VCs changed their targets, and were willing to look at firms which may well provide 30% growth rates over time, they would have more hits and fewer failures…