BUSINESS

Before You Fundraise, Here’s the Most Important Thing to Know About How Venture Capitalists Think

“I’m going to start raising money for my startup,” a student explained as she chatted with me at the end of one of my entrepreneurship classes. “You mentioned you’ve raised money for startups in the past. Before I begin fundraising, what’s the most important thing I should know about venture capitalists?”

The student surely wanted a constructive, actionable answer she could use to help her with the unfamiliar and complex process of fundraising. But she asked for my advice just as I’d finished a two-plus hour class in front of a bunch of Gen Z-ers. It’s an entire generation that learns best by watching 30 seconds video clips, so I was probably in the wrong mindset to answer such a complex question. Rather than giving her the thoughtful, detailed answer she needed, I gave something more akin to a pithy, tweetable quip.

“Venture capitalists will never care about you or your company,” I told her. “That’s the most important thing to know. Once you understand VCs don’t care about you and your company, everything else becomes a lot easier.”

The relationship between VCs and founders

On its surface, the answer I gave wasn’t great. I can admit that much. I’d just categorized an entire profession as, basically, a bunch of selfish, heartless villains.

No, it wasn’t my proudest moment as an educator. Theoretically, as an educator, I’m supposed to be objective. But I’m also a longtime founder, and every founder who’s tried raising venture capital holds some level of a grudge against VCs.

How could we not? After all, at some point, every founder has surely felt wronged by a VC in an unforgivable way. It could have been something as mundane as a simple rejection that felt undeserved. It could have been something as bastardly as the founder being removed as CEO by a VC who’d gained too much control. Or it could have been something in between. Whatever the case, as much as founders and VCs need each other to operate, they’re also natural antagonists.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr yshegtr