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>misalignment of interests between founders (growing a sustainable business) and VCs (dilution) Not all foundrrs are interested in growing a successful busines
by vram22 6y ago
>misalignment of interests between founders (growing a sustainable business) and VCs (dilution)
Not all foundrrs are interested in growing a successful business. In fact, what with all the brainwashing that has been going on for years by VCs ("go big or go home", "10-bagger" - old, now it is "unicorn", or is there another more current mot du jour, ha ha?, "lifestyle business" passive-aggressive shaming, etc.), it's a wonder that anyone exposed to that shit still has the balls for doing a traditional business that relies on, you know, just honest sales, customers and profits. But there are still many who do (have the balls for it).
Who do you think bags the 10(x their investment)? VCs, not founders or emps.
- vram22 6y ago>foundrrs Meant founders, and I messed up the HN asterisk formatting stuff.
- vram22 6y ago>lifestyle business" passive-aggressive shaming I should have added: by VCs, to founders or prospective founders, for their own selfish vested interests, of course. The more dupes join the startup lottery, the more the "house"[1] (a.k.a. VCs) stands to gain, because it is a numbers game. [1] Think Las Vegas. In fact, top VC Fred Wilson wrote a blog post about this "lifestyle business" passive-aggressive shaming business a few years ago, and it had a ton of discussion in the comments. You can find it by a Google or blog search.
- vram22 6y agoAnd this does not mean that I am advocating that no one should start or join a startup. I just mean, for your own sake, do your due diligence. It's not only companies or VCs who need to do that.