Over time, more of the market has closed itself off to new business - pushing entrepreneurs to raise VC for things that don't make sense.
Banks and even public markets used to capitalize new/small businesses. Now they don't.
The world needs more early (non venture) capital.
VCs in 2023: “we made some bad investments in 2020 and 2021 but we’ve become quite disciplined.”
VCs in 2024: “we’re excited to be leading a $175M pre-seed in IHOP AI - a company that was formed 7 minutes ago by two former interns at Google Deepmind who are seeking to revolutionize fast casual breakfasts by using LLMs.”