How Software Is Eating Venture Capital

An entrepreneur I met recently has several Sand Hill Road venture capitalists (VCs) eating out of his hands. Having launched their product on Kickstarter, they are collecting in pre-orders at the rate of upwards of $20,000 a day. With $3 million in pre-orders at hand, VCs are begging to invest - or get in on this opportunity. The pre-money valuation has risen into the "obscene" category. Without Kickstarter, this company would have been laughed out of any VC meeting with a terse comment - "we do...