VCs Vs Entrepeneurs: From Both Sides of the Phone Call
June 22, 2013
Two sparring articles were written on the subject of the relationship between entrepreneurs and Venture Capitalists (VCs), the first of which cajoles VCs and portrays them as lazy and overweening, titled Dear Dumb VC on Andy Dunn. Dunn claims that VC’s fail to recognize the necessity for the autonomy of entrepreneurs, offering advice and taking too long to decide whether to invest. The article As Populist as it May Feel, 98% of VCs Aren’t Dumb on Both Sides of The Table responds thoughtfully to the previous post. The author states,
“My view … it is my job to be a sparring partner. I want to challenge the founders view. Why? Because being an entrepreneur is a lonely job. You have to make tough decisions with few inputs and little history from which to base your decisions. CEOs can rarely express their uncertainty and doubt to others. So the VC’s job is to challenge. Cajole. Debate. Offer contrasting views. Play Devil’s Advocate. And then step back.”
Obviously, on some issues the two come to agreement, like the subject of using the product at hand. Not experiencing what you are investing in is, both articles find, foolish. But one point that wasn’t touched on was cleverness of investors who pump millions upon millions into companies with aging technology. Real sharp.
Chelsea Kerwin, June 22, 2013
Sponsored by ArnoldIT.com, developer of Augmentext.
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