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The VC/company relationship is really not at all like an employer/employee relationship. With VCs, the power dynamic is worse, because of the incestuous nature
by michaelochurch 14y ago
The VC/company relationship is really not at all like an employer/employee relationship.
With VCs, the power dynamic is worse, because of the incestuous nature of that community.
Your boss can fire you, but if he tries to blacklist you or otherwise fuck up your future jobs, and you catch him, you will not only be able to sue him and win, but you'll embarrass him and he'll probably never manage again in that company, if not lose his job.
On the other hand, VCs talk to each other in all kinds of inappropriate and anti-competitive ways. They tend to look out for their own. So a VC can prevent you from raising money in the future if he wants to.
So, in fact, the power relationship can be a lot worse. It's true that VCs don't micromanage, but when things get ugly, they can be a lot more damaging than a regular boss.