VC wants to see zombie startups shut down

He wants to see other VCs wind down their living dead companies because it's bad for the asset class? Sell your stake to the founders for a dollar. You still write off the whole damn thing, and the founders get to continue on if they want to.

Ah, the sunk cost fallacy meets the dot-com bubble - decisions to invest more (both in money and, more often if I read this correctly, in time and expertise) are being made based on previous investment, not future return.<p>As such, these living-dead companies are preventing the release of cash and expertise into other businesses. I would add to this VC concern that many (of course, not all) of those businesses are probably also preventing the release of founder expertise and energy into better projects.

First thought when I saw the title here on HN: <i>Great, as if "rockstar" and "ninja" weren't bad enough, now we're doing moving on to "zombies"? Whats next, vampires?</i><p><a href="http://jsvampire.com/" rel="nofollow">http://jsvampire.com/</a>

I want to shut zombite VCs and redistribute the money to YC like incubators in different industries.