One of the most nefarious forces in the venture market during the last bubble was dumb money. It drove up valuations and financing sizes, drove down decision making timeframes, pushed smart money out of syndicates, harassed management, fed venture fratricide, and worst of all, was gone in a flash when the bubble burst.
I know because I cleaned up a bunch of companies from the messes left by the "Drive By" investments that dumb money favors.
And I am seeing every single one of these things happening now. It’s deja vu all over again. It’s scary.