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Three of our worst VC stories

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Re: Three of our worst VC stories

#71

I doubt VCs have different distribution of personal character from other professional groups. In my experience, a more interesting friction is that VCs are pursuing a diversification strategy while founders are pursing a singleton strategy.

VCs are the shotgun cartridge and startups are the shot.

Re: Three of our worst VC stories

#72
post #63
post #53

I hear story #1 periodically, but almost never see a quote. How is this stuff said specifically? It always seems like hearsay. I'm sure it's authentic, but I'd love to hear the details on how that stuff is actually said in conversation.

Someone asked him this down the thread. He replied that it was said to him. So it’s a first party account.

It's interesting he provides quotes for the other stories, but not this one. And still doesn't in the thread. Again, i'm not debating the authenticity, but is it possible he's inferring that based on something not-so-explicit being said?

I'd love to see/hear the words that people actually say when I hear stories like "they said they wouldn't [invest/buy/etc] from me because i'm a woman".

Re: Three of our worst VC stories

#73
post #53

I hear story #1 periodically, but almost never see a quote. How is this stuff said specifically? It always seems like hearsay. I'm sure it's authentic, but I'd love to hear the details on how that stuff is actually said in conversation.

I came across this thread on twitter this morning but isn't he the CEO / co-founder and he's clearly a man? I guess I don't get the reference. I know he has a co-founder who's a female, maybe she was lead at the time?

"1. A Sequoia partner passed on Cloudflare because he didn’t think a woman could lead a security infrastructure company. Seriously. "

Re: Three of our worst VC stories

#74

I doubt VCs have different distribution of personal character from other professional groups. In my experience, a more interesting friction is that VCs are pursuing a diversification strategy while founders are pursing a singleton strategy.

It used to be that VCs wanted founders to pursue a singleton strategy, because they wanted the diversification to occur at the level of their portfolio - on the grounds that at the level of an individual startup, diversification would less likely to succeed. The catchphrase was that they wanted "pure play" investments. So it would be interesting to know why it's now a cause of friction. (The "pure play" thing was actually from before YC took off and gave founders a bit more agency; and before the "pivot" was popularised; I get the impression that VCs back then were not too happy for a founder to change direction and confuse their portfolio)

Re: Three of our worst VC stories

#75
On one hand, every VC who passed on Cloudflare missed out on what is now an $88 billion company. On the other, if they didn't invest because they didn't like the underlying economics, they were actually correct. 17 years after founding, Cloudflare still has never turned a profit.

Re: Three of our worst VC stories

#76
post #3

theres always a story behind the story. wondering why he chose today to say these

probably just been long enough that he doesn't give a shit source: most of the bullshit i surface up nowadays

i mean right but even you hold back some stuff because youre a Nice Person yknow? haha

Re: Three of our worst VC stories

#77

I could write a book with the horror stories I have of VC and LP behavior, and some of the wild stuff I’ve either been asked to do, verified others were asked to do or say it’s just totally unhinged. I don’t know if Angel investing groups are really still around like they were in there 2010s but the variance in the types of insanity and weirdness for those groups is really unmatched.

>some of the wild stuff I’ve either been asked to do

Oh man, I'm really sorry you had to go through that :'(.

Re: Three of our worst VC stories

#78
post #53

I hear story #1 periodically, but almost never see a quote. How is this stuff said specifically? It always seems like hearsay. I'm sure it's authentic, but I'd love to hear the details on how that stuff is actually said in conversation.

I came across this thread on twitter this morning but isn't he the CEO / co-founder and he's clearly a man? I guess I don't get the reference. I know he has a co-founder who's a female, maybe she was lead at the time? "1. A Sequoia partner passed on Cloudflare because he didn’t think a woman could lead a security infrastructure company. Seriously. "

He's referring to Michelle Zatlyn afaict.

"Young Global Leader '14. Co-founder, President + COO Cloudflare"

Re: Three of our worst VC stories

#80

All I ever hear are horror stories. Can someone tell me a good story about VC that isn't Facebook or something?

As with all things, the horror stories just get the most attention. People love to rage. There are plenty of boring (good, even!) VCs out there. They just work more quietly, professionally. I'll share a story, but its about a close friend and not me so I won't name any explicit actors and I'm going to round out the numbers. You either trust me or you don't, but this is a very direct relationship I have to both the fo…

Great story! What was the stock plan mess up that resulted in that?
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