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The show Silicon Valley well parodied this phenomenon. It implied that the evasive "no" is commonly because VCs don't want to be known for passing on an investm
by mrangle 3y ago
The show Silicon Valley well parodied this phenomenon. It implied that the evasive "no" is commonly because VCs don't want to be known for passing on an investment, outright, that then later takes off.
Which would reflect negatively on their judgement, in more or less a worse manner than it would when risking money on something that fails.
The implied choice then becomes to probably lose money but retain reputation, or to protect money at the possible cost of reputation. Funds can't invest in everything, even if passing on something borderline is a repuation risk. The "not a no but no" third option seeks to both retain reputation and protect money.
- Galacta7 3y ago> "The show Silicon Valley well parodied this phenomenon." Yup, often hilariously. Basically summarized in this scene (especially the very end of the clip): https://youtu.be/PdCoadVSfXg?si=VVwDsNw84WoZx8XD https://youtu.be/PdCoadVSfXg?si=VVwDsNw84WoZx8XD
- mrangle 3y agoGreat scene. The theme is repeated both when Monica reveals her shameful secret of having passed on Slack, and when Erlich turns down the ferret / pig startup: "I'm not passing, exactly, I'm just not saying yes" (paraphrased).