Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself.
If you don’t want to read that post, the summary is:
- Open source computing drove computing costs down 90%, which spurred innovation in technology
- Open cloud led by Amazon with their AWS services drove total operating costs down by 90%. This led to an explosion in startups.
- Amazon in turn led to the formation of an earlier stage of venture capital now led by what I call “micro VCs” who typically invest $250-500k in companies rather than the $5-7 million that VCs used to invest.
To read the full, original article click on this link: Changes in Software & Venture Capital – Part 2 of 3 | Both Sides of the Table
Author: MARK SUSTER
