A Unified Theory of VC Suckage
21 hours ago
- The author criticizes venture capitalists (VCs) for being arrogant, sneaky, and overbearing, attributing this behavior to the structure of their compensation, which involves a percentage of large funds.
- VCs take a long time to make decisions and conduct intrusive due diligence because they invest large sums, leading to paranoia.
- VCs often steal startup ideas to share with competitors, driven by the high stakes of large investments.
- VCs tend to interfere in companies by installing their own CEOs and micromanaging, due to large investment risks.
- Large VC investments can harm startups by forcing them to hire unnecessarily or pursue high valuations that limit exit options like acquisitions.
- The author argues that VCs are not inherently bad but are shaped by their work, similar to car salesmen or bureaucrats, and only top-tier VCs like Mike Moritz can avoid these traits due to access to the best deals.