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> A VC is a client, in another form. Only, clients give you money that you can use in any way you see fit: Grow your business, buy a West Coast Freeride bike,
by raganwald 16y ago
> A VC is a client, in another form.
Only, clients give you money that you can use in any way you see fit: Grow your business, buy a West Coast Freeride bike, save it for a rainy day.
VCs put money in your business and then take your business for themselves and decide how to spend their money. It was never yours and never will be. If you wind up getting a big, big payday, you might get some of that money. But you'll never get a penny from the VC.
Thus, I would say that while there are excellent reasons to do business with a VC, if we are comparing them to clients I would say they are more demanding than clients while paradoxically giving you no money at all.
- ahoyhere 16y agoI was thinking of it purely in terms of decision-making -- if you are only bootstrapping, you are free to serve your customers to the best of your ability, and shape your business how you choose. I have seen many friends forced to compromise because their VC demanded it. (And not the everybody-learns-and-grows type of compromise.) But you really pounded the financial nail into the coffin there :)