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Putting "power back in the hands if companies where it belongs" requires no change at all. Just don't take VC money. It's that simple. Most companies are not be
by pge 9y ago
Putting "power back in the hands if companies where it belongs" requires no change at all. Just don't take VC money. It's that simple. Most companies are not best served by raising money from VC firms (and I say this as someone that has been an institutional VC for almost 20 years). But if your take on a business model that requires capital, the expectations of return of those investors are going to be commensurate with the risk. As soon as you raise outside capital whether from a VC or borrowed from your local bank, you have committed yourself to new obligations that will put constraints on how you run the business. Those constraints can be explicit ("pay us X interest every month") or implicit ("the risk associated with the startups we invest in is so great that we have to swing for the fences with every investment, so we are going to push you to a billion or bust strategy."). It is important to understand them before you take outside capital (topic for a longer post...). But if you want to stay in control, it's always best just not to take any outside capital at all.
- soup10 9y agoThis isn't realistic. Many business need outside capital, they just need it without the institutional baggage. For my own business i'm specifically looking for investors that are aligned with the companies goals first. And its proving difficult because so many investors have distorted ideas about the very nature of business. Many believe the point of business is to make money. Which is exactly the wrong mindset from my point of view and highly dangerous to what we are trying to accomplish.