I don’t universally vilify the approach as there are tons of cases where the capitalization approach worked amazingly, but the extent and duration by which the early stage funders have sought “the next hot kid” can’t last forever(especially if you look at how their businesses work).

In fact that most of block busters have been dependent on *unique* distribution or data access on or from one of the decade defining platforms of the last decade(Zynga, Instagram, Wildfire, Mint, demandforce, Yelp all serving as examples) over earth shattering technology.

Hopefully, the market of VC financing will hold up if this house of cards starts falling apart before the US public equities markets take their next dive.