Steve Blank, a legendary Silicon Valley entrepreneur who appeared on the podcast 20VC earlier this week, said that the startup ecosystem is on the verge of turning into a Ponzi scheme that offloads destructive or valueless products on the next generations.
He said that while some founders are looking to disrupt industries, improve lives, and change the world, investors are “looking for a liquidity event.”
VCs, who are hoping to see sky-high returns, are investing in things like social media, as opposed to technologies that the world actually needs.
And one of the consequences of this laissez-faire approach to investing could be the destruction of democracy, Blank said.
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Before the age of social media, the pioneering venture capitalists invested heavily in hardware, computers, therapeutics, and the life sciences, which ushered in an era of breakthroughs in technology, including the Apple computer and new drugs manufactured through bioengineering.
But Steve Blank, the serial entrepreneur who launched his legendary career in Silicon Valley in 1978, said that the current startup ecosystem is on the verge of turning into a Ponzi Scheme. It wasn’t a literal comparison, but Blank is suggesting that entrepreneurs often aren’t delivering the best value to the next generations to come.
Blank, who appeared on the podcast 20VC, which is hosted by Harry Stebbings, said that startup founders and venture capitalists do not share the same interests, and this discordance has led to a slew of startups that fail to create the technologies that our society actually needs, including better medical equipment. Blank’s words echo those of another notable investor, Marc Andreessen, who has recently called on founders to help the US rebuild its healthcare, housing, and education systems.
It’s not that Blank believes that the entire startup ecosystem is a …read more
Source:: Business Insider