Dave Winer has a thought-provoking post up outlining his "plan to reshape the VC industry around the philosophy of the web."
He has two main points, one being that it's now entirely possible to start a venture without capital. The second point is to cut out the middleman:
We don’t need the partners, limited or general, they gum up the works. We need money to start new ventures. Luckily we know the people with the money, they’re the users. And we need people to validate the ideas. Same people, the users.
Winer points to the successful evolution of online investing as a model for this kind of transition, and I think he's spot on. Kerabu's business plan is a model for just that type of direct transaction. And I'm encouraged to see simultaneous thinking along the same lines beginning to crop up. A year ago, when I started working on the project, it was inconceivable. Now it's gestating in the ether.