Must we really go around calling a bunch of random people 'douche bags' for behavior that in some cases, isn't even remotely problematic?
One of the most astute VCs I know and have worked with came from money and knows his way around a regatta. Hell, I've even seen him with a pastel sweater around his shoulders.
According to this random CFO guy I've never heard of, that makes my VC a 'douche bag' - but if I was raising money again, I would have that VC involved again in a second.
Sometimes criticism teaches you more about the criticizer.
I once had a "potential investor" (worth $80m) who wanted a meeting with my patent attorney.
So, I made the arranged for us to meet him at our usual meeting place - the coffee shop.
We walked in and the "potential investor" said: "we haven't got time for a coffee", I replied: "well, this is where we are having the meeting"... "what HERE? doesn't he have an office? This is a very bad start."
In walked my patent attorney wearing a cagoule and a rucksack.
The "potential investor" made it perfectly clear that he was not impressed (he did not even get up to shake his hand). He interrogated him for half an hour before saying: "good, you can now drink your coffee".
I realised that day, that money, is only a small part of being a great VC.
This happens a lot and tech is not without its elitists, but that doesn't excuse rude behaviour. I have found this happens a lot, but a lot less than in England. Fortunately we have people like Zuck in a hoodie and Brin on the subway, both with more money than god to thank for leveling the playing field a little.
Next time, don't wait for the VC to let you drink your coffee. You could be American about it and pander to his/her ego, or you could be British (since you use both word forms I am assuming you're also a transplant) about it and tell him to go fuck himself.
You're not just taking on money, you're taking on a partner in your venture. Just because they sign a check doesn't mean they can't harm you in some way.
There's a term for someone who will take on a partner no questions asked, as long as they have enough money ....
Raising VC is kind of like buying a car. If your destination is decently far away, it makes a lot of sense.
The problem is that a lot of these folks don't know how far they're actually going. They end up buying a car to drive around the corner or just down the block. And now they have to deal with parking, gas, insurance, etc.
Even worse, they're usually going in the wrong direction initially. It's a much better strategy to start on foot, go for a quick walk, and then get a bicycle. When the bike's tires are bald, then it's time to think about buying a car.
If you've driven there before (or somewhere very similar) either alone or in the passenger seat, then maybe you can skip straight to buying a car. But then again, it's a different time of day and traffic is unpredictable.
And once you're driving, don't be afraid to pull over and ask for directions!
Alternatives: taxi, Zipcar, rideshare, Uber, renting a car, leasing a car. It's a pretty good metaphor because you really don't need to buy a car to go "decently far away" at all. A one-time car service charge of $1k is a lot better than a $20k loan.
I'm not sure that matters here. This is more a guide to knowing the types - and they exist in all markets large and small - so you can avoid or best case prepare. Many on this list won't invest so it's good to weed them out and save you time and heartbreak.
I've taken money from Mark and can say quite honestly that he's provided a ridiculous amount of value to our company since coming on board. He's an operator and a realist who really is "founder friendly"
I've no doubt about that. I'm merely pointing out that his own list removes him from the pool of VCs that he speaks of. I just don't think his post was well thought through, to be honest. I don't know anything at all about Mark, I'm glad to see that he is top quality!
This is good to know. I merely pointed out some contradictions in his own blog post. I don't know anything whatsoever about Mark. I wasn't attacking his person - promise!
I seem to have developed an aversion beyond words can convey, about people who shamelessly rip-off the svbtle layout. This is simply wrong on so many levels.
And you've just made it look uglier with those noob-ish buttons.
"Types of VCs to avoid taking money from" would be better. It sounds like he's going to name actual people to avoid, rather than general VC archetypes.
> On a similar note, it’s pretty fashionable these days to see party rounds with lots of investors each putting in a small amount of money. Mark Suster calls this collecting logos.
Collecting logos - now that's a new one. I used to call that "buying trophies" :)
Another saying that I have about Silicon Valley is that it's "Wall Street with jeans".
There's a lot of money, and a lot of power sloshing around. It's not all fairytales and lollipops. When you get here prepare to get fucked. Repeatedly.
Before dealing with anyone always ask yourself this question:
> "How are they fucking me?"
It's a line I stole from Jim Messina - Obama's reelection campaign manager. It's proven quite useful.
Oh and one last important heuristic: never trust a suit. Engineers can be pretty bad at fucking each other when they become founders - but then again by then they're just suits.
> But unless a potential investor is listing people he plans to intro you to, you shouldn’t be hearing names.
But remember: Anyone that he lists does not work for you. Odds are high that your company will fail, and that person knows where his next meal ticket is coming from.
One of the most astute VCs I know and have worked with came from money and knows his way around a regatta. Hell, I've even seen him with a pastel sweater around his shoulders.
According to this random CFO guy I've never heard of, that makes my VC a 'douche bag' - but if I was raising money again, I would have that VC involved again in a second.
Sometimes criticism teaches you more about the criticizer.