Great piece by Hemant! I enjoyed his book 'Intended Consequences'. It's worth a read and a solid recommendation to founders too. #notanad...

Don't 100% agree with everything in there, however, I also think the traditional VC power law will be tested as hinted in the article as well. Ofc we stand to be proven completely wrong.

If the points are correct, which is validated by initial data from VC Lab success, then the world is about to go through some big changes...

I definitely see this in spacetech, where Europe is trying to catch up with US, China and Indua by pouring in lots of capital to activate entrepreneurs and investors to support European access to space. However, the complexity will be the scaling if they also wants to ”keep it” in Europe… a lot of that government money is coming with a lot of strings attached, most of them making it hard to scale globalky.

When they say larger capital commitments and longer time horizons, how might that affect/implicate small <$10MM venture funds?

I believe the smaller pools of funds are better for the general eco-system activation. Europe despite being a "traditional" market for ventures still has too many issues and is not fully developed. Hence, I think the smaller funds definitely have a place. As far as govt. money is concerned, I would stay away from it apart from anything thats pure R&D and/or public/OS work. Relying on public funding to scale is def not a good strategy...and in most cases not the intended use of those kind of funds as well. Most EU govt. funding for the so-called "expansion" are as you said mis-guided and come with too many strings attached.

While the article has some very interesting observations, I want to bring your attention to the first paragraphs: don’t you find it interesting how the US is praised as the main reason for the prosperity over the past decades, yet the crises are external? Some may argue that the biggest economic downturns of the past 2 decades were driven by e.g. US MBS market collapse and subsequent quantitative easing. I see similar practices in European GPs and founders: if we succeed it’s our blood sweat and tears and if we fail, the reasons are systemic. I think as VCs we should demand more accountability and transparency for the financial system and ourselves. This won’t fly if we look at things without absolute clarity and objectivity. And I think this impartial view makes a good managing partner as well. Do you agree? If so, any thoughts on how we can spark this type of thinking in the ecosystem?