Even the cozy world of venture capital is not safe from competitive forces. Here's a great article by Michael Lewis that talks about the rise of convertible bonds. Why is this interesting? It's because convertible bonds take what was once the purview of venture capitalists (stakes in red hot tech companies) and gives it to investment bankers (they men who used to control all the money). What does that mean? Cheaper capital for all. Also, as people are more comfortable with risk, transfering risk from the private to the public markets. It also means a lower risk premium (so more things will go bust).