VCs Pay For Mistakes
from the not-the-original-title dept
Okay, I’ve been seeing way too many articles like the one discussed here. It’s all about how VCs are suddenly being more careful about what they invest in. How ridiculous is this? Shouldn’t they have been more careful initially? Here’s what’s really going on (obviously this is my opinion): for months VCs have been complaining that entrepreneurs have too much control and valuations have been too high. This recent downturn has given the VCs a chance to strike back, and claim they won’t be funding “just any plan” any more. What they really mean, is they want a lower valuation on the deals they do and more control. They’re still looking for good ideas, and I’m sure if you’d asked them two months ago they would have said the same thing. The companies that are really in trouble are the crappy plans that have been funded but haven’t gone public yet…
