(Disclaimer: there’s going to be typos in this. I’m taking a brief break from working on a Sunday to clear some thoughts. This is my personal blog not a company website)
Recently at an unnamed CEO forum most of the founders discussed how to maintain control and their worries and concerns about VCs “not knowing what its like” or trying to steal control really bothers me that there is so much hatorade going around recently for VCs. I feel bad for them, in a world that is getting more and more competitive and capital less crucial as it used to be for starting a company it seems insane to me that founders would still be thinking that VCs are “evil” and here’s why:
· Most VCs would prefer you to run the company. Their job is to make money and protect it. If they wanted to be getting their hands dirty they’d have started their own company but to efficiently make money they cannot be dedicated to one idea
· VCs usually only want the amount of control that is warranted by their investment; ie they want as much as they need to feel comfortable for the risk. True some angels have ridiculous requests but its in their naivete and also in knowing their dilution of some kind is inevitable (again, a theme here in risk management)
· By definition if you are taking a VCs money then you need them, so try to also get ideas and worth from the situation not pretend as though they are valueless
Software. Sailing. Writing Stuff.