Member-only story
#21 — The Venture Capitalists and Entrepreneur’s misaligned priorities
We see it everyday, the nuances of investing in Startups, the role that the Venture Capitalists (VCs) play in it and the role the founders play in driving success. Many of the founders are serial entrepreneurs and VCs in the same boat with hundreds of investments spread across the industry, yet the success of startup’s is only merely defined at 20% at the best (meaning as a VC, 80% of my investments are bad investments and I may never see a dime come back to my bank account).
With so much power, money, and the success of the past, we continue to see the disconnects between the VC’s and the entrepreneurs, their misaligned priorities, their objectives and end goals, rather than being on the same team driving towards the same goals, there seems to be misalignment between their objectives and goals.
This is a small attempt to shed some light and uncover what I have observed in the industry over the last few months, spending time with both VCs and Startup CEOs / Entrepreneurs. As Entrepreneurs look at engaging VC’s in their business there are a few considerations they should navigate through for the success of their startups.
The Venture Capitalist Mindset
The venture capitalist’s mindset is geared towards maximizing their investments and the return on…