Basil Peters wrote an excellent blog post today on why VC firms have got too big.

He argues that the VC model is broken, one of the main causes being that the focus is on ever-larger investments. (I believe it’s possible that with the current Great Deleverage happening before our eyes, that the trend could reverse.)

His bottom line:

This necessity for venture capital firms to invest more and more in each company has profound implications for entrepreneurs and angel investors.

For most startups it means that venture capital firms probably aren’t the best source of funding – or that they aren’t even a desirable source of funding.

Do you know many NZ startups (as opposed to early stage) that are delighted that are delighted with their VC experience?