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Is Silicon Valley Funding the Wrong Stuff? - Wall Street Journal Article

This very interesting article from the Wall Street Journal highlights the somewhat contrarian views of Yatin Mundkur at Artiman Ventures in Palo Alto, CA.

He argues that too much VC money is flowing into the wrong kind of startups chasing the too small market opportunities.

"Consider this. The entire market for advertising is around $100 billion a year in the U.S. (Globally it's close to $500 billion.) Yet the nation's gross domestic product is more than $16 trillion.

That means every venture-backed startup chasing advertising revenue is going after just 0.6% of the economy. Put in employment terms, the ad-related economy employs just a few million people, versus 140 million Americans whose job it is to do everything else.

Still, the pursuit of advertising dollars includes about every startup that is going for scale first and says it will figure out how to "monetize" its users "'once it has the eyeballs.'"

Click here to read the full article:

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