[eskimoroll]

VCs are needed as an asset class because there is a market opportunity to service a small segment of the population that are trying to create high risk, capital light, and high growth potential businesses that do not fit the risk/collateral/historical cash flow characteristics that banks need to believe that you can service their debt. VC money is EXTREMELY expensive and can be thought about as similar to credit card debt and payday lending. Sure, VCs have value added services like contacts and expertise that help portfolio companies potentially have a higher chance of success, but their primary motivation to help you is to return money to their limited partners (and themselves through management fees and carried interest). I'm an entrepreneur and know many amazing VCs who hopefully will someday fund my business but I'm realistic in acknowledging the nature of the relationship.