How VC's Make Money

For all the entrepreneurs out there. A magnificently simple quote on how VC's make money, from Peter Rip, General Partner at Cross Link Capital:

"VC's have always made money at finding the ideal point of friction between the Present and the Future. Profits accumulate in the gap between What Is and What Is Possible".

Brilliant!

This quote was made in reference to his view on the decline in Web 2.o investment. Its not that Web 2.0 companies and services aren't valuable, but that Web 2.0 is now "firmly in the category of What is".