Comments on: The Myth of Venture Capital http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/ A Latticework of Thought, Action & Joyful Foibles Tue, 02 Nov 2010 05:29:23 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: DJ Burdick http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-2380 DJ Burdick Mon, 19 Jan 2009 02:54:33 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-2380 PS: hope you don't mind, I grabbed the same comic for my post. Best, DJ PS: hope you don’t mind, I grabbed the same comic for my post. Best, DJ

]]> By: Don’t Pitch VCs Too Early « http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-2376 Don’t Pitch VCs Too Early « Sun, 18 Jan 2009 10:16:08 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-2376 [...] your side and at that point, you can get a deal done that you want. The industry tends to have an inordinate amount of hype around it. Remember that there are just as many positives as there are negatives with taking investment [...] [...] your side and at that point, you can get a deal done that you want. The industry tends to have an inordinate amount of hype around it. Remember that there are just as many positives as there are negatives with taking investment [...]

]]> By: Don’t Pitch VCs Early « http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-2375 Don’t Pitch VCs Early « Sun, 18 Jan 2009 10:15:22 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-2375 [...] your side and at that point, you can get a deal done that you want. The industry tends to have an inordinate amount of hype around it. Remember that there are just as many positives as there are negatives with taking investment [...] [...] your side and at that point, you can get a deal done that you want. The industry tends to have an inordinate amount of hype around it. Remember that there are just as many positives as there are negatives with taking investment [...]

]]> By: DJ Burdick http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-2374 DJ Burdick Sun, 18 Jan 2009 09:51:24 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-2374 Well said. We just raised a round from a VC in the valley. There are positives and negatives to everything and the negatives of the VC industry definitely get overshadowed by the myth of VC funding = success. The bottom line is: Focus on your company, make it great and the money will come. Well said. We just raised a round from a VC in the valley. There are positives and negatives to everything and the negatives of the VC industry definitely get overshadowed by the myth of VC funding = success. The bottom line is: Focus on your company, make it great and the money will come.

]]> By: Grace Chen http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-476 Grace Chen Tue, 05 Aug 2008 02:22:09 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-476 Allan, you make a splendid argument. Being intellectualized in the Bay area really demonstrated to me how glorified venture capitalists were. Whereas exit strategy is indeed important, the tremendous emphasis VCs place on this element does not necesarily bode well for solid business ideas or longevity. With the increasing competitiveness of VC firms themselves, perhaps the tables will turn in favor of the great entrepreneur. Allan, you make a splendid argument. Being intellectualized in the Bay area really demonstrated to me how glorified venture capitalists were. Whereas exit strategy is indeed important, the tremendous emphasis VCs place on this element does not necesarily bode well for solid business ideas or longevity. With the increasing competitiveness of VC firms themselves, perhaps the tables will turn in favor of the great entrepreneur.

]]> By: Matthew Reinbold http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-235 Matthew Reinbold Wed, 07 May 2008 21:40:18 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-235 Actually, I think that's a big part of the problem. Bad behavior is rewarded by lemming like funding. Bubbles arise because those with money are no longer making prudent decisions with their dollar votes. And because the carrot (sometimes) is to parrot the last thing that had an exit (rather than true value creation) entrepreneurs go where they're led. Actually, I think that’s a big part of the problem. Bad behavior is rewarded by lemming like funding. Bubbles arise because those with money are no longer making prudent decisions with their dollar votes. And because the carrot (sometimes) is to parrot the last thing that had an exit (rather than true value creation) entrepreneurs go where they’re led.

]]> By: Allan http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-234 Allan Wed, 07 May 2008 19:51:48 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-234 Matthew, You're absolutely right. There are VCs out there that behave like lemmings. There are also a select few funds that think independently and find the best entrepreneurial teams and opportunities. But that's not the entrepreneur's problem is it? Matthew,

You’re absolutely right. There are VCs out there that behave like lemmings. There are also a select few funds that think independently and find the best entrepreneurial teams and opportunities. But that’s not the entrepreneur’s problem is it?

]]> By: Matthew Reinbold http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/comment-page-1/#comment-233 Matthew Reinbold Wed, 07 May 2008 19:03:19 +0000 http://allantyoung.com/2008/05/07/the-myth-of-venture-capital/#comment-233 Another great post. I agree, in a perfect world venture capital follows true innovation and execution. But what about those venture capitalists who invest based on buzzwords? Who are more concerned that their portfolio 'has a Facebook-play' than the opportunity to create real value? Is that just proof that fools and their money are soon parted? Or am I assuming that copycat deals and investing in the flavor of the week is a bigger problem than it really is? Another great post.

I agree, in a perfect world venture capital follows true innovation and execution. But what about those venture capitalists who invest based on buzzwords? Who are more concerned that their portfolio ‘has a Facebook-play’ than the opportunity to create real value?

Is that just proof that fools and their money are soon parted? Or am I assuming that copycat deals and investing in the flavor of the week is a bigger problem than it really is?

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