VCs - Thursday, April 3, 2008 10:08 - 3 Comments

We Fell For It And Are Men Enough To Admit It

From FirstRound: The UNFunded

It pains me to admit when I’ve been had.  The UnFunded ”launch” struck a chord, and since I am 3 hours behind Josh, the 9:30P post on 3/31 (for me) did not set off the “APRIL FOOLS” warning bells that it should have.  Well done joke, and we can admit that we were fooled.

However, I do want to take this opportunity to address one of the points Josh brings up: the level of mistrust between the VCs and the entrepreneurs.  He’s right.  There’s a vast, and I mean VAST, divide between the two.  With the democratization of information, abundance of capital, and decreased marginal costs of company production, it should come as no surprise that the tricks of VC days of old are coming back to haunt them.  I myself have been in three separate VC funded businesses.  I’ve done the money raising.  If VCs want to know what’s killing their business, I will let them in on a little secret:

Continue Reading…