As we start 2023, the infamous phrase “software is eating the world” turns 12 and fast approaches its teenage years. After a glorious decade-plus run, I believe the typical angst, awkwardness and entitlement awaits many parts of the industry in its teenage phase. As the VC cloud ecosystem evolves from being a “do no wrong” innocent child into a mature adult that has to deal with the realities of the outside world, I believe the industry (and its returns) are likely to have its Peter Pan moment where it fights mean reversion while still trying to fly around in Neverland. The emerging consensus view that “now is the best time to invest in venture” is unlikely to materialize — although that doesn’t mean those at top need to worry much (at least for the next decade) or that some savvy firms can’t do more than deliver market beta.