Aberman Quoted in Washington Business Journal: State of Regional VC

Jonathan was quoted in this article on the state of venture capital in the Greater Washington region written by Andy Medici of the Washington Business Journal:

The D.C. region’s declining share is more worrying for Jonathan Aberman, managing director for Amplifier Ventures. He thinks it’s a mismatch between what venture capitalists want — high-growth consumer software and product companies — and what the region produces — and more service-oriented companies.

“The reason why this matters is that we make things that people don’t want to buy — and that is our problem,” said Aberman, who writes a weekly column for the Washington Business Journal. “We excel at being consultants.”

In the last decade or so, a software emphasis shifted to Silicon Valley, while the D.C region created deeper inroads in government contracting and media markets, leaving it in a poor position to attract venture dollars. Aberman’s solution? Place a stronger emphasis on products over services to generate the kind of interest and attention that leads to more mergers, acquisitions and funding.

“Venture capital as a model depends on growing companies that are likely to be acquired by other businesses in the short term,” Aberman said. “When you are growing companies that are hyper-relevant to the larger companies, you get more M&A and you get more deal velocity and you get more VCs to invest.”

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