It’s much simpler than a lot of people think. Venture capitalists want the largest returns possible, they do not care about anything else, people, environment, social, nothing. They will pretend to in order to get the returns. Just as they expect you to say anything to win they will also say anything to get the best deal.
More risk = more reward
This isn’t just VCs, it’s capitalism. It shouldn’t be a shock
Just so everyone understands how VC works, when a company announces a round of VC funding what they are really saying is they just sold a percentage of their company for the number in the announcement. You know the capital funding number, you don’t always (often?) know the valuation or the percentage.
If you are any sort of entrepreneur, you’ll understand how difficult this is , it can feel like a deal with the devil for a percentage of your soul.
But again, more risk = more reward
Remember , it’s an old game, startups predated modern VCs, tech, Silicon Valley, all of it. Think outside your current bubble, well written business books back to the 1920s exist. Sometimes simpler examples help, never engage with what you don’t understand.
VCs don’t even care about risk. They just want founders to make them a lot of money. It’s just that their portfolio strategy involves trading on tail distributions of risk. :P
This isn’t just VCs, it’s capitalism. It shouldn’t be a shock
Just so everyone understands how VC works, when a company announces a round of VC funding what they are really saying is they just sold a percentage of their company for the number in the announcement. You know the capital funding number, you don’t always (often?) know the valuation or the percentage.
If you are any sort of entrepreneur, you’ll understand how difficult this is , it can feel like a deal with the devil for a percentage of your soul.
But again, more risk = more reward
Remember , it’s an old game, startups predated modern VCs, tech, Silicon Valley, all of it. Think outside your current bubble, well written business books back to the 1920s exist. Sometimes simpler examples help, never engage with what you don’t understand.