Tech VCs Promise to Never Disagree with Founders
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Tech VCs Promise to Never Disagree with Founders
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Re: Tech VCs Promise to Never Disagree with Founders
#2Certainly times have changed. If the bubble does burst anytime soon, people might look at this in hindsight as being another warning sign we missed.
Re: Tech VCs Promise to Never Disagree with Founders
#3Entrepreneur-friendly is big focus for many investors these days. Witness Techstars equity back guarantee as just one example.
Felicis, based on its exits, is a top-tier micro VC (if you define it as Of course, there are those that feel that "voting along is a unrealistic commercial move that negates the investor's added value to his/her LPs". [1]
[1] From comments here - https://www.cbinsights.com/blog/founder-vs-venture-capitalis...
Re: Tech VCs Promise to Never Disagree with Founders
#4The headline of this article doesn't really match the contents. Certainly partners from Felicis Ventures will disagree with founders from time to time, they just apparently won't vote against them in board votes. In many circumstances this promise won't have much practical impact.
Re: Tech VCs Promise to Never Disagree with Founders
#5Suddenly the President/CEO title differences matter for co-founders.
Re: Tech VCs Promise to Never Disagree with Founders
#6While I like that investors are now forced to give entrepreneurs a better deal, this sounds like a move too far.
This is like a blank check for entrepreneurs with no strings attached, and no consequence for failure. In fact, the share given to founders in the diversified fund means that financial returns may be had even for a failing business.
That doesn't sound like an entrepreneurial risk/reward type system anymore. That sounds like a guaranteed reward for a bunch of "special" people who are part of some special club.
In fact, it sounds like East Coast investment banking.
Re: Tech VCs Promise to Never Disagree with Founders
#7Sounds like the headline of an Onion article...
Re: Tech VCs Promise to Never Disagree with Founders
#8The headline of this article doesn't really match the contents. Certainly partners from Felicis Ventures will disagree with founders from time to time, they just apparently won't vote against them in board votes. In many circumstances this promise won't have much practical impact.
The article doesn't clearly say board votes. It actually says "vote the shares", which, I'm not all that clear how often or with what significance shareholder votes happen in a pre-ipo company.
Re: Tech VCs Promise to Never Disagree with Founders
#9The headline of this article doesn't really match the contents. Certainly partners from Felicis Ventures will disagree with founders from time to time, they just apparently won't vote against them in board votes. In many circumstances this promise won't have much practical impact.
The article doesn't clearly say board votes. It actually says "vote the shares", which, I'm not all that clear how often or with what significance shareholder votes happen in a pre-ipo company.
I'm not gonna save never because I'm sure there have been bizarre exceptions but....basically there are never shareholder votes. Only board votes.
Re: Tech VCs Promise to Never Disagree with Founders
#10While I like that investors are now forced to give entrepreneurs a better deal, this sounds like a move too far. This is like a blank check for entrepreneurs with no strings attached, and no consequence for failure. In fact, the share given to founders in the diversified fund means that financial returns may be had even for a failing business. That doesn't sound like an entrepreneurial risk/reward type system anymore…
The consequences for failing as an entrepreneur have always been and will always be opportunity cost.