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by xiaolingxiao
2240 days ago
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Yeah the lying is really gross. It's an odd arrangement in this country where "shareholder value" can literally justify most things in the eyes of those with money. For a more personal anecdote, I have a friend who's been in the VC industry for 5+ years, and we had a very interesting conversation. He was closing a deal with a company and they asked for a higher valuation, and he thought objectively it's merited. But then he thought: "if I give you the higher valuation, then you would have more and I would have less, but I want more". And that's the root of it, human nature. Now assuming these VCs have been in the game for more than 5 years, I would imagine they would lie without a second thought. Now see it from the VC's perspective, the game attracts all kinds of hustlers who'd lie to investors without a second thought as well. My friend and I were talking about what business culture is like in a certain area of the world, and he said: they oversell everything, so take everything they say and divide it by two, and start from there. So part of it is also a pre-emptive mechanism based on a history of such behaviors from others. None of this make things "ok", but I'm just sharing an anecdote from the other side. |
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I think a lot of the problem is not necessarily what the VC's do when it comes to situations, but that they lie, to themselves, to others, or both, about what they will do and at a fundamental level who they are. There's a world of difference between telling someone you're their friend and will protect them and nothing will go wrong when you know there's a good chance it will, and telling (or being) a friend but being up front that your job means you will act a certain way in specific situations, and that may be against the interests of others.
This happens in business, and it happens in personal life. I respect people that are consistent and represent themselves accurately, even if I don't like them or agree with them. People that misrepresent themselves are relying on an information asymmetry that they're creating to give themselves an advantage. This clearly works in many instances, but it also a "burnt-bridges" strategy that only works because of the relative anonymity that modern society provides. In some ways, this could be solved by more information about these people and how they function (which is how the free market works, best with more and more accurate info), but that's hard to accomplish because of their relative power.