There are changes afoot in the venture capital industry, and my friend Rick Segal seems to have a plan or at least some ideas to adjust with the times. In a cryptic post  today, he quasi-explains the problem: "This world (editor's note: I assume he's talking about the VC business) has some issues that need to get fixed. Everything from being nice (no referrals) to defining the customer (you, the start up), we have lots of issues. Add this to the changes happening on the Web, the big guys using the HR department to handle buying small companies (hire em and ‘buy the company’ via big sign-on bonus), we’ve got trouble brewing." He then talks about creating news and the application of cluetrain and hughtrain "to the art of getting good ideas into sustainable forms that create the because of effect". To be honest, I have no clue what Rick's talking about but given he has consulted with Robert Scoble, Doc Searls, Chris Pirillo and Hugh Macleod, I assume there it's a big idea that needs some time to evolve and emerge. One thought - and it's one that came from a recent discussion - is whether the VC is even needed within the Web 2.0 environment. If you can develop and distribute a new application/service with little capital, what roles do VCs get to play if they can't bring money to the table? Maybe this is what Rick is working on. In any event, he suggests we read this post by Doc Searls and wait for more details. Very, very interesting.....
Update: The New York Times has a story today on VCs who blog, and how their need keep quiet about potential deals and interesting start-ups means they tend to write a lot about things other than venture capital. I wonder what Segal has to say about the article given he's probably one of the most frank - and focused - VC bloggers out there. This isn't to suggest I don't enjoy Fred Wilson's music selections but you never know what you're going to get.