Modern venture capital has transformed into an unchecked oligarchy, or "Cancer Capital", where mega-firms managing $50B+ live off fees and shift risk elsewhere (Anil Dash)
We really, really need to talk about venture capital. Because it's not “venture capital” anymore.
Modern venture capital has evolved into a unchecked oligarchy, or "Cancer Capital," where large firms manage over $50 billion and profit from fees while transferring risk to others. This transformation has resulted in a disconnect between the traditional understanding of venture capital – where investors provide capital to founders building companies – and the current state, where a few billionaire individuals abuse the title of "VC" to pursue agendas without accountability.
The author, who has personally raised venture capital as a CEO and board member in multiple startups, argues that these bad actors have warped the structure of venture capital into an oligarchy, answering to no market, regulators, or voters. The result is a political and social machine focused on undermining democracy and civil society.
Examples cited include A16z's political contributions exceeding $115.3 million in the midterm cycle, surpassing any other billionaire donor in the country, and their support for candidates across both parties. The author also highlights Andreessen Horowitz's hiring of a partner without any relevant background or qualifications, specifically noting his disqualifying actions against an unarmed neighbor.
The narrative underscores the severity of the issue, emphasizing the need to recognize how venture capital has transformed into a political and social entity, rather than a financial machine for funding startups, and the urgency to address this growing problem.
Written by urgent.news from Techmeme's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
