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Today's premium newsletter is about how the JOBS act and endless growth-driven greed is killing venture capital, with terrible returns and inflated valuations leading to a logjam of unsellable companies. The AI bubble has made things much, much worse. www.wheresyoured.at/premium-vent...

In 2012, Congress passed the JOBS Act with rare bipartisan support. The bill, which was intended to make it easier for companies to raise money and to go public, had an unintended side-effect of incentivizing VC to juice valuations. www.wheresyoured.at/premium-vent...

To understand this story, you need to understand that VC isn't in the business of backing startups. Most of the money goes to mid-to-late-stage companies. Although the size of seed rounds has grown, their share of the dealmaking pie hasn't. www.wheresyoured.at/premium-vent...

And while growing round sizes has juiced valuations, it's also made exits far more elusive, to the point that 28% of all exit values of the last two years came from Elon Musk's companies acquiring other companies, mostly with stock. www.wheresyoured.at/premium-vent...

The JOBS Act made it possible for startups to remain private longer, for VCs to juice valuations more aggressively, and when they eventually hit the market, valuations have been pushed to their limits, leaving little chance for retail investors to profit. www.wheresyoured.at/premium-vent...