A Flip/Flop Bubble of Microventures?

Vinod Khosla is getting back into seed funding something closer to what BusinessWeek... ...Paul Kedrosky comments:

As one GP put it to me recently when I described our seed investment style here in San Diego, "You put as much as work into seed investments as you do into larger ones, but the management fee is lower and you have to make more investments & track more deals. Where's the incentive?" Absolutely. Agreed. Stay away.And the entrepreneur cringes. It's easy for me to say when I have passed it, but the seed round underpins everything in the valley. During the bust, all the Angels died and went to heaven. Luckily, some of those that did well during the boom stayed in the game and seeded most of the great new companies known today. The incentive, putting aside the carry, is higher risk/reward. But it is also the opportunity to develop white space markets. A different kind of challenge I think both entrepreneurs and great investors appreciate. The other approach is short-term investing, which VCs don't do, in theory. Which brings me to the new micro-bubble. Not related to the Khosla story, there are a ton of former entrepreneurs getting back in the game these days. The lure isn't just that markets are opening again. A mindset is developing in the valley that you can and should develop startups for quick flips. If you have your own cash, you can seed a play like this yourself, filling a targeted niche -- both in product, market and engineering expertise. I even heard of a major portal getting into seed funding to encourage it. Perhaps this whole thing was started by Google's micro-acquisitions. I don't have any data on this trend, as it is the most private part of equity, but it is the talk of many a Silicon Valley coffee shop. I've always believed the Ross Mayfield is CEO and co-founder of Ross Mayfield's Weblog which focuses on markets, technology and musings.