I have a number of entrepreneur friends that have become VCs. We’re all optimizing different factors in our own lives and careers, but I just don’t get it.

In case anyone’s not paying attention, the venture capital business is not in great shape right now.  Returns (relative to risk and other asset classes) aren’t that good.  There are too many funds, VCs, and dollars chasing too few deals.  Good projects are highly competitive, with VCs spending a lot of time trying to sell some differentiation and paying too much on bid-up deals.  Large funds are struggling with how to participate in small-capital projects.

I have a lot of VC friends:  they’re all working harder than they’ve ever worked before, and are likely making less money than they’ve ever made.

I think part of the attraction is based on out-dated romantic notions.  Back in the 90s, VC was THE career-capping move for an entrepreneur.  “Venture capital” would be the last job you ever had, and you were making a lot of money and not working very hard.  (In 1999, it felt like the VC weekend started at 4pm on Thursday.)

(If I ever join the dark side, feel free to remind me of this note.)