So, perhaps the real answer is that Sevin Rosen hasn't yet figured out how they can add real value above and beyond the money they put in, in order to create real businesses with serious exit possibilities. If that's the case, then perhaps it's a good thing they're taking a break to figure out how to change things for themselves. In fact, plenty of venture capital firms might want to do the same. However, this isn't an indictment of the venture capital business, so much as it is of the way that many of the firms in the space have done business.
The main issue is whether or not we are creating an expectation of profitability when there is no eventual chance at achieving it. Many are concerned that we'll see another dotcom bubble burst and there will be few companies surviving to pick up the pieces.
A year ago, in my initial excitement over social media, I thought we were about to unleash a moneymaking behemouth. Now, I'm not so sure that it isn't going to be business as usual, with a slight net boom as blogging, social media, podcasting and vlogging settle in comfortably.
Yes, broadband usage is increasing dramatically, but is it adding a gajillion users, sustainably? Probably not.
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