Source: Facebook

https://www.linkedin.com/pulse/plunging-early-stage-deals-talent-exodus-2016-year-tatjana-de-kerrosEND OF THIS WAVE OF OVER-INVESTMENT?

We should perhaps note that the Bay Area over invested in highly speculative consumer-mobile momentum plays while the regions that invested in revenue producing products and services for consumer, business, medical, and finance were less heavily affected. The bay area venture markets, like the media business, is as much a victim of anchoring (fighting the last war) as is anyone else. Moreover the rest of the world has not adopted what we call the Hollywood Model for a good reason. And I am fairly certain that (as a follower of these trends) they are unaware that they have adopted the Hollywood Model.

So between Fighting the last war (anchoring), Speculation on Consumer Momentum (the consumer/mobile bubble),

We spent the 00’s converting a century of accumulated media into consumer goods, and it collapsed. We spent the 09-16 era providing seniorization of features previously affordable only with dedicated IT servers and staff, to consumers and SMB.

The next era will be one in which the underfunded and antique technology of the enterprise is replaced by enterprise products that operate as do consumer products.

But I suspect there will be a long pause here as globalization returns to nationalism around the world, and the primary competitive difference is no longer movement into the consumer class, but price differences caused by differences in formal institutions.

Curt Doolittle

The Propertarian Institute

Kiev, Ukraine