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Founders should treat VCs like the service providers they are and not like bosses. The only “trick” to doing this is having some amount of success before raisin
by oiuplk 9y ago
Founders should treat VCs like the service providers they are and not like bosses. The only “trick” to doing this is having some amount of success before raising money.
Corporations are controlled by boards so it’s not true that VCs control the company unless you sell them that right. You can refuse to ever give up power it just requires fortitude and conviction.
VCs are a temporary solution to the problem of funding technology companies. Replacements are already in play.
- csa 9y agoThis is a great idea in principle, but I think it rarely works unless your company is ridiculously hot. If you go the VC route as a company that is not the new hotness, then it will be trivially easy for the VCs to end up controlling the company (the good ones don't actually want to do this). Any veteran VC has experienced founders who want to retain control, and they know how to slowly increase the temperature until it is too late for the frog to realize that it is being boiled. Other than being thee new hotness, the only other way to maintain autonomy is bootstrapping. Frankly, many business seeking VC would probably have a much higher EV bootstrapping since they are either not a business that can scale at VC levels and/or only have access to mediocre VCs.