Netflix Lays Further Waste To the ‘Quarterly Capitalism’ Narrative

Originally published in Real Clear Markets, 8/13/2019

According to market data firm CB Insights and accounting firm PwC, technology start-ups managed to raise $55 billion worth of venture capital in the first half of 2019. This dollar amount is the most raised since the year 2000.

So while the dollar as a measure of value is a floating concept thus making comparisons to 2000 a little bit difficult, it’s apparent from the number that venture funding is on an upward slope. On its own this is a positive signal. While most venture-backed start-ups fail, the information that emerges from investment is precious. All great advances are a consequence of relentless experimentation that often results in proverbial “dry holes.” That’s ok, the failure enables more informed experimentation down the line on the way to discoveries that improve our living standards, health, wealth, and surely much else.

Notable here for the purposes of this column is that $55 billion worth of venture funding has been raised even though most of the start-ups that are being backed by this money won’t make it. It’s all a reminder that venture capitalists are a patient lot.