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A lot of advice VCs give entrepreneurs seems to me versions of "make my job easier," like how to write a great business plan, how to pitch, etc. In this case, I see him asking entrepreneurs to improve the signal-to-noise ratio so he can have an easier time funding companies. Nothing wrong with trying to make your life easier, but he makes the article look like he's helping the entrepreneur, when he's writing it to help himself, discouraging some would-be entrepreneurs who might love starting a company even if it didn't make a VC money. For an entrepreneur who makes their business their life, leading the company may be its own reward, making his advice meaningless, since he'll call it a success only if it generates a return on investment. At the very least, I'd appreciate the article more if he specified "Think twice before starting a company that might seek venture capital funding." Most entrepreneurs I know never approach VCs. Did he forget few companies involve technology at all? His advice doesn't apply to them. Well, except that thinking twice is obviously good advice to anyone, but his reasons for it. Entrepreneurship is far greater than starting tech companies looking for VC. I'd be wary of an investor who didn't realize he put himself in such a bubble. With all that name-dropping, you can see how social bubbles can contribute to investment bubbles. If you love starting companies and you have an idea whose time is now, you'll find a way to start your company. If you don't need venture capital, hopefully you won't hear his advice in the first place, or will realize it doesn't apply to you. Even if you do want VC, if your firm eventually dies but you loved doing it and it helps you do better on your next one, it seems to me you've succeeded. EDIT: I fleshed out a few more ideas to this post afterward if anyone wants to read past what I wrote here -- http://joshuaspodek.com/entrepreneurs-advice-venture-capital... |
But this post was different. He gave a couple of good points: there's a lot of competition: competition for users, competition for press, competition for attention. And it's emotionally draining as well.