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VCs give startups money, complain about startups using that money. News at 11. Maybe they'll be a little more careful about who they give their money to next t
by Blackthorn 12y ago
VCs give startups money, complain about startups using that money. News at 11.
Maybe they'll be a little more careful about who they give their money to next time.
edit: To put it a little more kindly, if startups without viable business models keep getting gobs of money maybe the problem isn't the startup!
- thirdtruck 12y agoAgreed. "Why do these kids keep emptying the bowl of candy that I keep out on my porch?"
- notacoward 12y agoThe VCs own compensation structure practically guarantees that they will raise as much money as they can and invest it however they can, no matter how much they have to lower their standards. As in the semi-obvious biological analogy, they don't really care about what kind of offspring they're producing. They just want to reduce the per-company expenditure so they can invest in more companies. That's entirely what this is about. Any good that the "be very careful about hiring" advice does for the companies or founders is purely incidental.
- ultimape 12y agoSounds like a bit of a simplification though. There are surely more other incentives involved with what companies they fund.
- notacoward 12y agoNever trust a money-lender who says they want people to borrow less. They just want more people to borrow the same total amount, to change their own risk profile.