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November 07, 2007



Definitely I would have left out the quote for another occasion, if ever. Having said that I'm very thankful for your honesty, as yours and others experiences are very welcomed.

This story doesn't surprise me at all. One thing I've learned from my readings is that VCs have a certain percentage of equity they can burn without having to show any results for, and it's all good as long as they look good among their peers, since they all do the same. Therefore, this fellow you talk about was simply doing his part. They possibly knew he might not produce sure value at the end, but he was among peers, so who cares.

VCs seem to put a lot of emphasis on appearances, and that simply doesn't add any value to a start-up. Hence, VCs cannot be considered a partner in any way, shape or form. They'll be the first ones to escape and leave you holding the dynamite stick they themselves convinced you in the first place to light up. Thus, to act on something a VC says for the simply reason they said it goes against your best interests.

Bottom line, don't get in business with a VC unless you really, really (and I mean really) have to. If you do, don't ever ask for so much money that you'll be required to give up your controlling stake. And whatever amount you get, use it conservatively. If you're really good at what you're doing, you should be able to execute either alone or with a handful of very skill individuals. Throwing bodies to a problem will always, always make it worst.

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