4 ms·
Don't VCs publish lists of the companies in their portfolio? The first part is sensible, the second part sounds a bit paranoid. I've never heard of a VC fundin
by hugh3 15y ago
Don't VCs publish lists of the companies in their portfolio?
The first part is sensible, the second part sounds a bit paranoid. I've never heard of a VC funding a company that competes with another one in their portfolio, just to sabotage it.
- lisper 15y ago> Don't VCs publish lists of the companies in their portfolio? Yes, but only after they make the investment. If they're still in negotiations you generally won't know. > the second part sounds a bit paranoid. I've never heard of a VC funding a company that competes with another one in their portfolio, just to sabotage it I confess this is pure conjecture on my part, and it would be pretty farfetched for a VC to make a major investment for this purpose. But many VC's have seed funds now. For $100k they can buy an awful lot of influence at an early stage company, and the interests of that company may or may not align with the interests of the VC's overall portfolio. The chances are small, but I think not completely discountable, especially in cases like the one described by the OP.
- Joakal 15y agoI think it would make more sense to say that they have a different potential company with a better price tag to spur a more 'competitive deal' even if none exists. A similar tactic of introducing competition when none exists is used by real estate agents most if not all the time I hear. "Oh, there's an interested buyer that's willing to pay $2000 more than your offer for this property." It's a scam that preys on what the buyer wants. Hint: Bluff back "My offer has dropped $5000. No? I'll look at other houses then."