| VCs are soccer stars, but founders play basketball. It’s easy to dunk on VCs, but the herd effect is rational after considering the typical VC’s background, the intense competition for good deals, and the job requirements — to prudently deploy capital. Who wants to pitch their boss on investing $1-10M in a product no one uses, built by a team of anons? This is not to defend the process, but merely explain it. It’s not so different from customer marketing. To win a VC, first understand the VC. Once hired, VCs cannot easily get fired yet they exert immense strategic control. Nonetheless, many founders interview summer interns harder than VCs. Heuristic: after removing capital, would you hire the VC to be your boss? Great VCs are worth the equity and will turbocharge startups. When you find one, don't haggle. Get a fair deal, and get right back to coding. Bad VCs will destroy companies the same way soccer stars would destroy basketball teams if made the head coach. |