Fixing Venture Capital

14 Feb ’05

A VC responds to Joel Spolsky’s ChangeThis Manifesto piece titled Fixing Venture Capital and looks at three criticisms of VCs:

  • VCs only want 100 to 1 returns and are willing to risk
    everything to get them while entrepreneurs want a safe high probability
    bet.
  • VCs are so inundated with business plans that they become focused
    on the process of whittling down opportunities instead of finding the
    best opportunities.
  • The "standard VC deal" is unfair to entrepreneurs and smart ones won’t take it.

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