3 ms·
I don't claim expertise on this topic, but it's worth noting that on this point, a VC's incentives are potentially misaligned with the founder's. In funding ro
by perpetualpatzer 6y ago
I don't claim expertise on this topic, but it's worth noting that on this point, a VC's incentives are potentially misaligned with the founder's.
In funding rounds, VC's themselves have enough experience to avoid accepting unreasonable terms, so a portfolio founding team with no background in business is not a problem for the VC and means one less name on the cap table and/or less burn. The same cannot be said of a technical founder, for whom a a business-savvy adviser (either as a cofounder or adviser) may be the thing that prevents them from getting fleeced by an early investor who is unscrupulous or undervalues the business.
None of this is to say the advice is given maliciously. Just that it should be taken with caution normally due to financial advice from parties with financial interests in your behavior.