> I would argue however, that because VC's are holding the money and entrepreneurs are trying to raise, it might not be as bad as a boss/employee power dynamic, but the power is certainly held by the VC in the situation.
- The vast majority of highly successful companies don't raise venture. VCs need equity, entrepreneurs don't need money.
- The vast majority of companies that raise VC don't succeed.
- The vast majority of VC funds have lower than market returns.
I think the real situation is more that a lot of inexperienced founders glom onto VCs because they think that not having money is what's keeping them from succeeding.
There is also a common belief that the fact that VCs are predominantly male is creating a power imbalance that's keeping women from being more successful, despite the fact that the empirical evidence from other industries seemingly shows that there isn't much correlation between the sex of the gatekeepers and who they choose to back. E.g. LP is pretty gender balanced and most VCs are male, most literary agents and publishers are female but most published authors are male, etc. If there were more female VCs then it's possible that more women would get funded, but I think right now that theory is more of a truthclaim than anything else.