Photo: Steve Wampler via Flickr
It sounds like the old “In Soviet Russia…” jokes. AOL recently organised a “VC Demo Day” where investors pitch startups instead of the other way around, reports CNN.The easiest way to think about this is that it’s another sign of the early stage startup funding bubble many investors think is going on. Of course, it’s also a smart marketing gimmick for AOL to promote the event, its venture arm and AOL itself.
But it might also be a sign of the “new normal”. Many longer term trends, like the increased cheapness of setting up a web startup, and the examples of extremely successful Founder/CEOs like Mark Zuckerberg and Andrew Mason, point to a permanent realignment of the power dynamic between entrepreneurs and investors. Y Combinator’s Paul Graham recently wrote that founders retaining control of their company after a Series A round is becoming increasingly commonplace, and might become the “default setting” for startup funding rounds within a few years.
So, which is it? We guess only time will tell.
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