James Smitt

“The overall data shows that more than twice the money flows into venture capital from LPs than comes back to them in a given year.
I wanted to hold onto something positive from this industry—after all, I’ve met a few brilliant people in it—but looking at the data, it’s hard, if not impossible.
In a Freudian sense, it's worth remembering that sometimes a cigar is just a cigar—not everything has a deeper psychological meaning.
VCs have made it look like magic, but the illusion disappears once you turn on the lights.
At its core, venture capital isn’t as much a unique asset class as it is a troubled one. The industry survives by injecting more and more capital each year, while leaving the majority of limited partners stuck at the losing end of a pay-your-bid auction.”
― Victoria Silchenko, Raise and Rise: Funding Sources for Your Startup in the Era of Digital Transformation & Blockchain

“Now, if you live in the U.S., keep in mind that the average annual interest rate for a credit card ranges between 15-19%—while store credit cards and banks like Wells Fargo charge 25% or more.

This means you’d have to generate returns comparable to the best-performing family offices—entities run by some of the most highly educated investment professionals in the world, whose full-time job is managing wealth.
So, next time a VC thoughtfully suggests you bootstrap your business with a credit card, tell him to take a hike.”
― Victoria Silchenko, Raise and Rise: Funding Sources for Your Startup in the Era of Digital Transformation & Blockchain

“Let me stress this: there are good and bad reasons for securitization.
At a macro-economic level, when done right, securitization can be a key source of financing across all stages of the supply chain, enhancing market liquidity and driving the development of new markets and products.
The problem? Banks and hedge funds love to exploit their power—using securitization as a tool to offload worthless assets onto an unsuspecting public.”
― Victoria Silchenko, Raise and Rise: Funding Sources for Your Startup in the Era of Digital Transformation & Blockchain

“You might well ask—what now then, shall I stop looking for capital?
Haha, that’s like asking whether you should get married or not—as they say, you’ll be damned if you do and damned if you don’t.”
― Victoria Silchenko, Raise and Rise: Funding Sources for Your Startup in the Era of Digital Transformation & Blockchain