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Faced 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
by kloncks 15y ago
Faced 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