11
Jun
Joel on Fixing Venture Capital
Although his software isn’t as good as some (ok, I had to get at least one jibe in there!) his writing is second to none. Joel’s latest article on Fixing Venture Capital hits the nail on the head.
Everyone’s read the opposite article (“VC’s are gods – all hail, bow down and accept their terms”) but never have I read something that explained things that seem inherently correct, so clearly:
The fundamental reason is that VCs do not have goals that are aligned with the goals of the company founders. This creates a built-in source of stress in the relationship. Specifically, founders would prefer reasonable success with high probability, while VCs are looking for fantastic hit-it-out-of-the-ballpark
