After 30 years in private markets, including work at Morgan Stanley and Bear Stearns, and later managing funds and advising family offices, I've come to a conclusion the venture capital industry doesn't broadcast: its model is structurally misaligned with the businesses it funds and the investors it represents. Built for an era of capital scarcity, hardware-cycle economics, and reliable public exit paths, the VC model hasn't adapted meaningfully to an environment where all three foundational conditions have changed. The market, however, is adapting, and the alternatives taking shape tell a more useful story about how capital formation works when incentives are aligned.
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