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Also the other thing that I realised after working with a bunch of VCs is that they are all incredibly dumb. Few VCs are founders themselves and you will have b
by ilrwbwrkhv 2y ago
Also the other thing that I realised after working with a bunch of VCs is that they are all incredibly dumb. Few VCs are founders themselves and you will have better luck with them but the majority of VCs have simply no idea about product and technology and they are simply pattern matching. What that means is that they will cargo cult everything and if your startup doesn't fit the mold they will not respond to you favorably and the sad part is that the actual 10x, 100x returns that their VC firm needs comes from those type of investments but they simply cannot see them.
- rvz 2y agoThis.
- caseyy 2y agoWe also have a problem with VCs that want start-ups to scale quickly, even though this often builds incapable teams. We then say, "Oh, it's because they stopped being in founder's mode," whereas in reality, the team is so malcomposed and mismanaged that it could not build even a simple product. This has happened a lot in games. Now, VCs have almost stopped pre-seed and seed funding in this industry. The global annual VC funding in games is about $1B, about 1.5 Call of Dutys. This is down from around 12B in 2022. One could say they threw the baby out with the bathwater because while many executives were abusing the found-scale-exit business model and taking investors' money, many were also not. It's pattern-matching through and through, very little due diligence.
- DrScientist 2y agoA long time ago - our director of research at a startup used to call VC's carnivoruous sheep ( dumb, flocking, but will eat you alive ). Ironically he is now a VC - but a very successful one.
- morgante 2y agoThis is way too broad of a statement. The smartest person and the dumbest person I've met professionally are both investors.