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It bothers me when people try to tell businesses how to improve their operations, purely for personal benefit. The point of VC firms is not to fund your busines
by glifchits 12y ago
It bothers me when people try to tell businesses how to improve their operations, purely for personal benefit. The point of VC firms is not to fund your business, its for VCs to generate a return on investment. VCs surely know that by not reading all of the applications, they are missing potential winners. But they also know that getting strong introductions is a much much much more efficient way of finding potential winners.
It is not the system's job to work for you, it is your job to play within the system.
- iandanforth 12y agoThe point he's making is that they don't "know" that warm intros are more efficient they only believe it. There was a time when the most efficient way to meet a significant other was a warm intro. Now okcupid and plenty of fish can legitimately claim to have facilitated thousand of marriages. I am not persuaded that slave labour associates reading cold emails is more efficient, but there are undoubtedly more creative and lucrative ways to handle the process.
- aceperry 12y agoSounds like a ripe opportunity for "disruption."
- deciplex 12y agoYou have a good point in the "advice" for personal benefit angle, but don't mistake the goals of a VC firm for their point (i.e. their raison d'etre). The goal of a VC firm may be to generate a profit, but the reason they exist is to implement part of the the resource-allocation function of capitalism. If they are failing to do a good job at this, even if they turn a profit doing so, then they are an unsuccessful firm (at least, in a broader sense).
- smokeyj 12y agoOr change the system.. Thanks Naval!
- rdlecler1 12y agoThat's sort of the point, isn't it? VCs have generated horrible returns. Compare that to Y-Combinator which doesn't require a warm introduction.
- bradhe 12y agoRealistically are YCs annualized returns any better than a top-tier VCs?