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Investors don't pass around deals 'because buddies' - they pass around deals because they're think they're good. A VC's currency is mostly founded upon the qual
by jollybean 6y ago
Investors don't pass around deals 'because buddies' - they pass around deals because they're think they're good. A VC's currency is mostly founded upon the quality of 'what they pass around' so they're using filters, which means it's a 'meritocracy' to the extent investors are investing 'merit' which they definitely believe they are doing.
Of course, getting to the first stage/level is also rather challenging, somewhat less meritocratic.
- ghc 6y agoWhen I said "because they like you" I didn't mean as a person. Hopefully people don't misinterpret. In my experience, investors (especially at the seed stage) don't just pass deals around because they're "good". Most of the deals investors pass around haven't been through enough diligence yet to determine whether or not they're good. Investors like to get second opinions from other investors, however, and they'll especially value your perspective if you've invested in a similar deal in the past, or founded a company in a related space. I've seen this from both sides of the table, and I would observe that the "filter" early stage VCs employ is more about whether the founders are engaging, and less about the fitness of a deal.
- redis_mlc 6y ago> Investors like to get second opinions from other investors The most polite description of herd mentality, ever.