I saw Brad Feld speak last night at Beer, Brad, and Boulder (you can see the recorded stream and chat here) and was really struck by something that he said.

In response to the question: "How broken is venture capital?" he said (paraphrasing, among other things): "It's not broken, but it is saturation.  It's absolutely cheaper to build companies nowadays, but it's not necessarily cheaper to build them and scale them.  Venture Capital is still necessary to scale businesses from the prototype stage, but no longer quite so valuable to get to that prototype stage."

(note: this is a test using Posterous to automagically post to this blog– sorry for the brevity!)

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