The fear of missing out

The investor psychology and why VCs aren’t immune

One of the most oft-repeated quotes about investing goes something like this: Be fearful when others are greedy and greedy when others are fearful. While Warren Buffett may not have had venture capital in particular in mind when he offered up that bit of sage advice, it is a fitting way to describe the current climate of the VC industry. Over the last year, venture capital has undergone a paradigm shift of sorts with regard to the approach investors are taking in choosing where to put their money. Instead of playing it fast and loose with capital, VCs are now taking a more conservative stance when it comes to funding, much to the chagrin of fledgling companies. ….[READ]

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