Venture Capital Disintermediation is Coming

Venture capitalists make the same classic investment mistakes most investors do:

1. Thinking they can pick winners ahead of time.
2. A concentrated portfolio dials up the risk for investors.
3. Follow-on investments are usually made at high valuations and further concentrates risk.
4. Herd mentality — chasing popular deals reduces returns.
5. Thinking that skill, rather than luck, drives returns.

Please keep in mind that almost all successful VCs (except Nick Hanauer) will vehemently disagree with this. Success blinds them to true cause and effect — they take credit for getting lucky, thinking what they do is important.

Quelle: Venture Capital Disintermediation is Coming