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How Funding Startups is Like Betting on Horses
Last week, a bit of a controversial, but thought-provoking, perspective about Venture Capital caught the attention of a lot of my readers and followers.
There has been a horrific rash of *VC Bad* propaganda and misinformation lately, sparking my thought that people are being misled about the what Venture Capital is and does. That, entrepreneurs are frustrated because VC isn’t meeting *their* expectations, when what’s actually happening is that people have expectations of VC that are misplaced.
True or not, is the role of venture capital clear? Does a lack of clarity fuel frustration and misalignment of advice and expectations? Are people in disagreement about all this??
A comment on the article somewhat affirmed my hypothesis:
“My own feeling is that VC is too much like flipping houses. In many, if not most cases the entrepreneur and the angels are not interested in building anything, they are just interested in flipping and leaving the final investor with a flawed, leaderless business.”
As I spent the weekend sleeping over this idea, some notable VCs joined me in a discussion asking this question, affirming that indeed, people misunderstand the role of Venture Capital…
