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Summary:

Entrepreneurs see their venture backers as the ones with control in the relationship, according to a recent online survey conducted by Research Data Technology for a member of the National Venture Capital Association who wishes to stay anonymous. And just as many of them may have […]

Entrepreneurs see their venture backers as the ones with control in the relationship, according to a recent online survey conducted by Research Data Technology for a member of the National Venture Capital Association who wishes to stay anonymous. And just as many of them may have felt about the expectations set by Mom (or Dad), VCs’ expectations are viewed as being unreasonably high.

According to an online survey of entrepreneurs at venture-backed companies, 61 percent think VCs have control in the relationship, whereas 24 percent believe the entrepreneurs do. The rest aren’t sure, or have checked their egos at the door. When it comes to expectations for the investment, 47 percent of entrepreneurs believe VCs are too aggressive and 10 percent of thinking VCs are downright unrealistic. On the other hand, 43 percent believe the VCs are setting reasonable expectations.

Unlike your family, it is possible to shop around for a VC. Entrepreneurs surveyed did just that, visiting an average of 12 firms before getting funding from (on average) three or four firms in total.

Where VC Firms Add Value

source: anonymous member of the NVCA

  1. VCs are like your mother — without the hugs — and without many women at all. Silicon Valley venture capital firms seem to be losing their women.

    Fortunately, Women 2.0 has invited all the talented women VCs (and a few good men) as judges of the Women 2.0 Business Plan Competition (http://pitch.women2.org/)

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  2. It would have been interesting to see what VCs thought about the “control” issue vis-a-vis entrepreneurs. They’d probably agree and say they have the control in the relationship too.

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  3. Microsoft acquires $40,000,000,000 in other companies every year, and they all love us!

    Write me!

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  4. Oh boo hiss hiss. I want your money Ms./Mr. VC. I want I want I want your money! Boo hiss hiss, don’t spank me if I screw up my business with your money. The money people always beat up on the entrepreneur. Boo hoo.

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  5. Hi Stacey,
    It is true that VCs most of the time have unreasonable expectations from the organization in which they are investing. They just cannot see any employee of that organization to be free even it is after office hours and they want all employees to work and deliever product much before time :(

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