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Fuck the VCs (or not fuck the VCs)

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Re: Fuck the VCs (or not fuck the VCs)

#2

Post by ryanwaggoner »

I disagree with the premise that anger towards VCs isn't warranted. The author paints a picture of the VC as an innocent victim of changing times:

"VC doesn’t have a greater share of bad actors than the ecommerce or gaming sectors. Large-scale, software VC is simply a formerly great business in decline, and there are a lot of good, smart people who haven’t made in VC yet who are worried about their (and their families’) economic futures. It’s not evil — it’s their job and they may not feel they can switch."

Those poor VCs who have no other career options available to them, and must therefore resort to squeezing every last drop of blood from entrepreneurs who don't know any better.

I absolutely believe that there are some fantastic VCs out there, but anger against the industry is only natural when you've been screwed over like some of these companies have.

Re: Fuck the VCs (or not fuck the VCs)

#3

Post by dennykmiu »

ryanwaggoner wrote: post #2

I disagree with the premise that anger towards VCs isn't warranted. The author paints a picture of the VC as an innocent victim of changing times: "VC doesn’t have a greater share of bad actors than the ecommerce or gaming sectors. Large-scale, software VC is simply a formerly great business in decline, and there are a lot of good, smart people who haven’t made in VC yet who are worried about their (and their familie…

Being angry with VC's is like being angry with mother-in-law. They will always be a pain if you insist on sleeping with their daughters. So make your choice, stop taking their money and they will cease to be your problem. Be angry ... but move on.

Re: Fuck the VCs (or not fuck the VCs)

#5

Post by tonystubblebine »

dennykmiu wrote: post #3
ryanwaggoner wrote: post #2

I disagree with the premise that anger towards VCs isn't warranted. The author paints a picture of the VC as an innocent victim of changing times: "VC doesn’t have a greater share of bad actors than the ecommerce or gaming sectors. Large-scale, software VC is simply a formerly great business in decline, and there are a lot of good, smart people who haven’t made in VC yet who are worried about their (and their familie…

Being angry with VC's is like being angry with mother-in-law. They will always be a pain if you insist on sleeping with their daughters. So make your choice, stop taking their money and they will cease to be your problem. Be angry ... but move on.

I love this analogy.

Re: Fuck the VCs (or not fuck the VCs)

#7

Post by _b8r0 »

Hexstream wrote: post #6

I've always wondered, do you really have as much decision power with 51% of the company as 100%?

In theory, yes. Having said that, leverage can be achieved through means beyond shareholdings and it's worth remembering that if you're heavily dependent on your VC for assistance.

Re: Fuck the VCs (or not fuck the VCs)

#8

Post by peanutcruncher »

The first thing anyone looking for venture capital needs to understand is that the primary objective of a VC company is to turn every dollar they invest into your idea into $10 over a 2 to 5 year time frame.

Once this fact is understood and understood well, then many of the emotional issues just sort of go away.

Re: Fuck the VCs (or not fuck the VCs)

#9

Post by gaius »

Hexstream wrote: post #6

I've always wondered, do you really have as much decision power with 51% of the company as 100%?

Nope: http://waxy.org/random/arsdigita/

Having said that, it's not at all clear what Greenspun really wanted VC money for in his cash-generative services company. Perhaps he shouldn't have bitten off more than he could swallow.

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