I was expecting it to come any time. Matt McCall is saying it now. A trend where people that flocked to private equity from mainstream industry getting fatigued, disillusioned and seriously planning to quit.
The business of Private Equity / Venture Capital is to “invest” and not to “deliberate” endlessly. Hence it is a space for Foxes – people with an investors’ mindset and NOT for hedgehogs – that of an investment professional or engineers. A Fox knows many things but a hedgehog knows one big thing. While an investment professional will analyze a startup idea to death, the Engineer will debate endlessly on technology. Between the two, any viable project gets crushed and that stymies the passion and drive of the founder.
Investors judge an early opportunity by instinct more than facts, because if you wait for complete facts to arrive someone else would’ve eaten your meal. They know a good team when they see one because they look for winning traits and not specific skillsets. “Back-a-winner” is the name of the game. Unfortunately many VC firms hired brilliant engineers at the investment desk and their fixation with technology deferred ROI considerations. An investor would never forgive that.