Succinct, precise recitation of the changes that are not only affecting the venture capital world, but the startup ecosystem in general.
Moreover, I have not come across a better concise summary of the disruption / reorganization taking place in large segments of our traditional economy, particularly services and retail:
“[A] ‘death of the middle’ occurs over time as service industries bifurcate into a smaller number of large, fully integrated, full-service institutions on one end and a larger number of smaller, niche-oriented institutions (with a focus on stage, industry, or specialized skillset) on the other.
Look no further than investment banks, law firms, accounting firms, advertising agencies, buyout firms, talent agencies, and recruiting firms to see how this phenomenon has played out in mature services-based business. Interestingly, we are witnessing this right now in a non-services business as well: the U.S. retail market. Long-dominant department stores such as J.C. Penney and Sears are giving way to big-box retailers and etailers (Amazon, Best Buy, Target) at the large end complemented by large numbers of specialty, boutique stores at the smaller end. [Though in retail, betting “narrow” can be big as the internet allows companies to better segment and address previously unaddressed markets.]”
Definitely worth a read and some reflection on your strategies - startup, growth and investing.
Full article here.
by Jeffrey Ruppert