QWANZ

“There’s too much money chasing too few deals.”...   >>>

“There’s too much money chasing too few deals.”



Sean Parker, the entrepreneur behind Napster and Facebook now turned investor, was talking about the state of the venture capital industry last week over coffee. At 30, Mr. Parker, who was recently portrayed by Justin Timberlake in “The Social Network,” has been thinking a lot about innovation — or the lack of it — in the United States. And he’s come to a depressing conclusion about the money industry that he says used to be “the engine of innovation” for this country.



“The risk-reward doesn’t work out in favor of putting money into venture capital anymore,” he said, even though he himself is a partner in a venture capital firm that owns stakes in Facebook and SpaceX, the private spaceflight company run by Elon Musk, a co-founder of PayPal. Mr. Parker, a night owl who had awakened before his usual rising time of noon to meet with me, the problem plaguing the venture business represented a “systemic risk” to the country that he believed meant “innovation could gradually grind to a halt or at least become less effective.”



[read more about the state of venture capitalism, start-ups and silicon valley in the article linked below]