It’s My Fault

Jeff Bussgang has today’s great post up titled Let’s Play "Blame The VC."  It’s something that regularly confounds VCs and entrepreneurs alike.  The punch line:

"Then, when you don’t get funding, play "blame the VC".  Tell all your friends that those risk-averse idiots wouldn’t know a good deal if it hit them in the face.  And especially the ones in [insert your geography here]."

Jeff does a good job – in a relatively self-deprecating way – of dissecting this endless discussion.

  • startup realist

    I'm in China, and I can't click through to the link, so apologies if my point is covered in Jeff's post.

    It's no different whatsoever than a marriage. If a guy meets a girl, and he thinks she is perfect for him, and he for her, and that they will live happily ever after, he will propose to her. If she says no, this isn't a perfect match, they go their separate ways. How is the entrepreneur – VC courting process any different ?

  • Alain Raynaud

    Well, unfortunately sometimes it is the VC who is wrong. May I remind you of the period around 2000 when dog food web sites were getting all the funding? At the time, we pitched our project, which required significant R&D investment over multiple years. VCs passed because they wanted their dotcom IPO within 6 months of funding. Most dotcoms bombed, we are still kicking, 3 rounds of funding later, reaching 100 employees and profitable.

    And I'm not talking about one isolated VC here. I mean dot-com blindness.

  • Jan

    Steve Jobs said an interesting thing at “All things D”: VCs never invest in ideas. They invest in people.
    I interpret this as “trust in relationships are more important than ideas”. If the VC knows that the Entrepreneur is a person that can deliver, almost any idea from that person is a good idea. Any comment?

  • Jason Mendelson

    I agree that people are a must. No matter how good the idea is, without good people it won't be a success. I wouldn't say “any old idea” with great people is a fundable plan. Then again, realize that great teams usually don't come up with mediocre ideas.