The Age of Attention: How VCs Must Adapt or Face Obsolescence
The author is Julien Petit, founder of Mighty Nine.The Tipping Point: From Capital to Attention
We’re entering a new era: the Knowledge Age, where attention has replaced capital as the most valuable currency. The pivotal moment in this shift? Elon Musk’s acquisition of Twitter. In that single deal, Musk and his backers made a decisive statement: attention is now more valuable than financial assets. Swapping $44 billion for a social platform wasn’t just an ambitious business move; it was a signal that the era of capital supremacy is ending.
This move aligns perfectly with the central thesis of Albert Wenger’s book, The World After Capital. Wenger argues that the scarcest and most valuable resource in the world is no longer capital but human attention. And Musk’s bet on Twitter showcases the power of a platform that can direct, harness, and amplify attention globally. Twitter is more than a social media site; it’s a vast amplifier, capable of swaying public discourse and creating movements with a few keystrokes.
For VCs, this marks a clear turning point. The Twitter acquisition is a tangible example of the shift from capital-driven value to attention-driven value. Those who still focus on traditional financial metrics without understanding the transformative power of attention are missing the bigger picture. The Knowledge Age is about harnessing attention, using it to fuel innovation and shape societal norms.
Albert Wenger and the Power of Attention
Long before Elon Musk’s acquisition of Twitter made headlines, Albert Wenger, partner at Union Square Ventures (USV), had already identified the shift toward the “Knowledge Age.” In The World After Capital, Wenger makes a compelling case: in the Industrial Age, capital was the most valuable asset; but in the Knowledge Age, attention is the new scarce resource, the new “currency” of our time.
Wenger’s argument is built around a simple but profound idea – in a world overflowing with information, our ability to focus our attention is limited. It is, therefore, the critical bottleneck for progress and innovation. Twitter’s value isn’t just in its revenue or growth but in its unparalleled ability to command and direct global attention. The power to influence minds, direct conversations, and ignite movements is what makes attention the ultimate asset.
In many ways, Wenger’s thinking reflects the current dynamics of the venture capital world. Traditional VCs have been focusing on capital as the primary value driver, following market trends, and looking for the next big thing. Meanwhile, Wenger and USV were ahead of the curve, recognizing that the companies thriving in the Knowledge Age are those that harness and capitalize on attention effectively. They saw that attention could be leveraged to create enormous value, which led them to make key investments in companies that have since become household names (Twitter, Etsy, Stripe, Coinbase, Zynga, Tumblr, Stack Overflow…).
The Intellectual Void: Why Most VCs Missed the Mark
While Albert Wenger and USV were deeply engaged in understanding the profound shift towards the Knowledge Age, the rest of the VC community seemed content to follow trends without deeper reflection. Rather than questioning the broader economic and societal changes at play, many VCs have been swept up by what’s hot – quick returns, hype cycles, and FOMO (fear of missing out).
This intellectual complacency is a serious flaw. The role of a VC isn’t just to fund what’s popular but to anticipate the future and support transformative ideas. However, many in the industry have relied on pattern recognition from the Industrial Age, where capital ruled, and simply assumed that the same logic would apply in the Knowledge Age. By not actively engaging in thoughtful debate and not questioning the evolving dynamics of attention and influence, VCs missed out on identifying key opportunities.
USV’s success wasn’t just due to luck or timing; it came from a consistent process of challenging assumptions, thinking deeply about technology’s impact on society, and sharing those ideas publicly. It wasn’t enough to just know where the apple tree was; USV wanted to understand why apples fall and where the next one would land. This commitment to intellectual effort made them different, and it showed in their track record.
If the broader VC community wants to replicate these results, it’s clear they need to elevate their thinking. It’s not enough to just “be in the room” or have access to capital; VCs need to be intellectually ahead, forecasting where society and technology are headed, and fostering an ecosystem of genuine innovation.
A Call to Action: VCs Must Be More Thoughtful
It’s time for a wake-up call. VCs must go beyond capital and deal flow, diving into intellectual rigor and debate. The metaphor of Jensen Huang’s apple and the tree is a fitting parallel. Imagine being in an orchard full of trees, waiting for apples to fall. You want to be under the right tree at the right time, but to do so requires a deep understanding of the orchard – the trends, the patterns, the environment. It’s about seeing not just the forest, but the trees where apples are ripe for picking.
For VCs, this means actively seeking knowledge, being willing to challenge assumptions, and fostering environments where true intellectual curiosity thrives. It means recognizing that in an era where attention is scarce, the real value comes from those who can foresee, capture, and amplify it effectively. Being reactive is no longer an option; proactivity in thought and vision is essential.
By raising the intellectual bar, VCs not only position themselves to make better investments but also actively shape the landscape for new big things. We’re at a critical juncture, where the path forward requires not just capital but brainpower, collaboration, and the courage to think differently. The VCs who are ready to embrace this challenge will be the ones who drive the next wave of transformative deals and innovations.
A Time for Intellectual Leadership
We are standing at a crossroads where attention is more important than capital, where intellectual rigor must replace complacency, and where VCs need to redefine their role in shaping the Knowledge Age. Just as Albert Wenger foresaw, we’re entering a world where influence is the greatest asset, and those who understand how to harness it will shape the future.
It’s time to stop resting on past success and start building the thought leadership necessary to thrive. For those willing to take on this intellectual challenge, the rewards will not just be in financial returns, but in the opportunity to be part of defining the future itself.
The author is Julien Petit, founder of Mighty Nine.“Always be raising” by Mighty Nine
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