Everything Wrong With Venture Capital

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Medium Premium Preview

This series concludes with a hard look at why we need new sources of capital for founders


The final story in our premium Medium series from author (and software company founder) Luke Kanies explores the need for alternatives to our current system of venture capital. In Kanies’ words, our system looks stable, but most companies follow the same playbook: They try to get their investments to the magic number of $1 million in annual recurring revenue (ARR), raise an A round of funding, and keep on the funding train until you go public or go bust. This system forces founders to contort their companies to fit the funding schedule rather than discovering their own destinies. Kaines believes that instead of continuing to fund disruptors, VC will itself be disrupted with a better alternative.

Discover more here:

Venture Capital Is Ripe for Disruption

Explore the Series:

Understanding Venture Capital

Read Part I:

If You Take Venture Capital, You’re Forcing Your Company To Exit

Read Part II:

Why the Most Successful VC Firms Keep Winning

Read Part III:

One Investor Isn’t Enough

Part IV:

Unicorns Distract Us from a Graveyard

Part V:

Venture Capital Is Built on Serendipity

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