It could be argued that the classic Venture Capitalist (VC) is the ultimate example of hubris in the modern world.. An irrationally positive belief, that – despite the odds – the money poured into an otherwise irrational venture will lead to that pot of gold..
Now it is being reported that VC capital is in danger of drying up… This is not the first time this sort of gloom-and-doom scenario has been predicted, but this time, there may be some hard evidence that all is not well in the land of eternal financial optimism..
As the article says, this ‘gloominess’ is not a recent phenomenon, but is just the latest cycle in a decade of pessimism.. It just may not have been obvious to the casual observer, for – as is often the case – the successes got the publicity, and the embarrassing failures were kept as quiet as possible..
It could be argued that all finance in the modern world is – quite literally – a confidence trick, and that once that confidence has finally been eroded, then what is left is just the smoke and mirrors.. This applies equally to a nations’ financial standing – and to that of its currency – as much as to a possibly-potentially-rewarding startup venture..
© Robert Gadsdon, 2012