As a founder learning the ropes of venture capital, you might see VCs as asset managers, with LPs as their customers and your equity as the asset being managed. This is heavily implied by the chain of responsibility: you are required to report your progress to your VC investors who want to see milestones crossed… Continue reading Startups are the clients of Venture Capital
Tag: venture capital
LPs should encourage VC evolution
In a previous article I wrote about the threat of consensus in venture capital. A few days later, Eric Tarczynski shared a fascinating thread about the journey with Contrary, his VC firm. He addressed this point about consensus with admirable candour, summarised here in two points: It’s unusual to get such an unvarnished look at… Continue reading LPs should encourage VC evolution
Why venture capital should be consensus-averse
In The General Theory of Employment, Interest and Money, Keynes wrote about investment through the metaphor of a newspaper contest to select the six best looking people from a group of photos, with the prize being awarded to the contestant whose choice most closely corresponded to the average of all contestants. Keynes’ point was that,… Continue reading Why venture capital should be consensus-averse