Eric Siu argues the venture capital model is breaking. Lower software build costs mean startups need less VC money, AUM-driven models face pressure, and deal pricing will fall. Venture funding increasingly goes to sales and marketing rather than product.
I think the VC model is going to be upside down in the next couple of years. Why? Chamath tweeted this out. So he's like, look, the model is completely broken because like you can build all this cool software now for way cheaper and you don't necessarily need the VCs. He had some other good reasons in there, but he's like the whole AUM model is like going to be underwater. Like to get in on these deals, like maybe they're not going to be priced as high as like what they're used to doing. You don't need as much funding. I think the money now is used for sales and marketing.
