The best role that VCs have here is in introducing the startup to a network of domain experts that have very specialized skills that a startup needs, but that w

The best role that VCs have here is in introducing the startup to a network of domain experts that have very specialized skills that a startup needs, but that would be very difficult to find without good contacts. Then, ideally, the VC steps back and lets the startup negotiate their own deal with these domain experts. Doesn't have to be a VC though, back when telecom was a thing, rather than hiring our PBX installer directly, I was able to track down a third party-consultant who knew all the players in the valley (having been doing this sort of thing for 20 years), and we leaned on them to help us track down bids, sort out the competing offers, and do last-and-final negotiation at the table. Saved us around $150K on a PBX install over what our preferred vendor would have charged us. Another great experience was when foundation capital brought in our initial Facilities installer - they took care of everything - second hand furniture, installing new drywall (less than a day), server rooms (back when those were a thing), etc.. But, in both cases, the VCs contribution was in introducing us to great people, who were ready to work. This approach by Hoffman feels like the situation we had at Netscape, where we had a Business Server division, spun off from main HQ, but they were required to use our IT services, which installed systems/networks that made total sense for Netscape IT, but probably were overkill for a small scrappy startup. The incentives were in conflict.