Is everyone in agreement with that?

Venturebeat says the VC model is broken:

Adeo Ressi, founder of TheFunded, the site that lets people rate venture capitalists, is the latest to try to articulate the changes with a dour set of slides…One of the shortcomings with the VC model, Ressi argues, is that venture capitalists rely on their network of friends. Of all networks, HBS is one of the tighter ones. Needless to say, Ressi’s message wasn’t very warmly received. In fact, while blasting the old boys network is a popular thing to do, I’d actually disagree with Ressi on this point. Increasingly, you’re seeing diversity within the VC community, and they’re pushing themselves hard to find great entrepreneurs of any kind. I disagree that the Google founders were outsiders. They were part of the Stanford engineering student machine, a source of Silicon Valley magic for years.

Where I do agree with Ressi is in the ugly economics overall. Most daunting is that there’s more money being invested into venture firms than those same VC firms are generating from their investments in start-ups — in other words, Ressi argues, they’re now having a net negative affect on the economy. You’d expect this lopsided dynamic to exist temporarily in a downturn. But the worrying thing is that this state of affairs may last for quite some time.

The Comments from this post are as informative as the actual post.

In another take, the downsized Valleywag.com says “Why Venture Capital won’t save your job“. Interestingly, the post refers to Ressi again (who’s getting a lot of coverage right now), as wel as to his famous slide deck: