So, the transition is nearly complete. In little over a decade we have experienced irrational exuberance AND fear, uncertainty and doubt (FUD) in the global economy. While the Nobel Foundation recognizes the profound complexity of Economic Sciences by awarding an annual prize, will our generation of consumers, investors and business leaders finally acknowledge that it is not the beauty of gaming theory, but psychology, greed, institutionalized deception and hubris which are truly the most powerful factors in economics? Fear, uncertainty and doubt and now consumes us all. The FUD is so deep that even aggressive investors and entrepreneurial business leaders are unable to act. At best we are all dealing with our personal and professional fears, at worst we have bona fide crises (fund losses, crashing sales, crippled personal portfolios, etc.) to be managed.
So, where from here? If the traditional venture capital model is on hold for now, let's invest our time, expertise and small amounts of private capital to bootstrap the next wave of start-ups. Great companies like 37signals and those emerging from TechStars depend on great people, a huge investment of time and relatively little money. Let's stop staring into the headlights!