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What's wrong with East Coast VCs? Do they lack money, vision, or both? It's not the first time I hear people with great ideas complaining about their inability
by acangiano 15y ago
What's wrong with East Coast VCs? Do they lack money, vision, or both? It's not the first time I hear people with great ideas complaining about their inability to get funded, only to receive decent investments the moment they move to Silicon Valley.
- zackattack 15y agoI suspect they lack vision and knowledge of how scrappy technology hacks can provide massive value. They have no idea how every most developers on Hacker News are capable of inventing "simple machines" with <5kloc. http://en.wikipedia.org/wiki/Simple_machine http://en.wikipedia.org/wiki/Simple_machine
- acgourley 15y agoTo be fair, without proof that those investments have paid off you could use those datapoints to ask whats wrong with SV VC's
- abbasmehdi 15y ago"without proof that those investments have paid off" <-- Are you serious? You cannot think of SV VC funded companies that have paid off?
- kiiski 15y agoI think he was speaking of this particular investor rather than all SV VCs.
- abbasmehdi 15y agoHe starts his sentence with "Its not the first time..." pointing to a trend.
- kloncks 15y agoFaced similar situation. My thoughts (based on my very limited experience) are that East Coast VCs seem to be more risk-averse. Which makes sense. It's easier to be more risky when you know investors down the street who have made 1000x with the who's who of the Internet.
- wisty 15y agoMaybe they are worse at assessing value. If a VC has no real idea what the value of a company is, they have to make a conservative valuation, to avoid being conned. They will also take longer to do the due diligence. A good VC may be able to make a good guess whether a company is worth investing in just by speaking to the founders for a few hours. A less skilled VC might take weeks, and still have no idea, so they can only offer a lowball bid.
- hollerith 15y agoCould whoever downvoted parent explain why? I don't want to start an argument or berate you; just curious. Do you object because it puts East Coast VC in a negative light?
- vaksel 15y agoEast coast VCs tend to invest in finance and drug companies