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A lot of these apply to all companies in general. A VC-backed company's main drawback is that a VC's goals aren't always exactly aligned with a company's goals
by anthony_franco 15y ago
A lot of these apply to all companies in general.
A VC-backed company's main drawback is that a VC's goals aren't always exactly aligned with a company's goals. A VC needs a $XX,000,000 return on investment. Even if a company's natural valuation would only be in the $X,000,000 range.
This puts the company in danger as they bet it all to try and go up an order of magnitude in valuation.