4 ms·
interesting to see the author admits VCs are generally superficial and only invest if they like you as a person. in reality to be succesful in business you need
by b20000 6y ago
interesting to see the author admits VCs are generally superficial and only invest if they like you as a person. in reality to be succesful in business you need to be able to work with people you don’t like, if they are really good and the right choice for your business. maybe that is the reason a lot of VC investments go nowhere.
- zippy5 6y agoIt's the ”nobody ever got fired for buying Microsoft” optics driven decision making. Essentially, VCs decisions on average don't work out, so they check the optics to protect their downside. So long as the decision looks superficially correct, they protect their reputation with both investors and founders even when things go south (which probabilistically they do). Does it cause them to pass on some great companies and miss the outliers? Yes. Do they regret it? Probably not.
- b20000 6y agoThe question if it's really down to probability that only 1 out of 10 investments works out. I'd say there is a big factor in there that they simply make poor business decisions, like doing whatever your friends are doing, and betting money on people you would like to go play golf with instead of people that maybe make you uncomfortable but are much smarter than you are as a VC, and know a lot more about the problem domain than you do.