Jul 31, 2007

Venture Capital

Rarely have I read a more interesting essay about the psychology of venture investing than this piece written by Todd Jaquez-Fissori. I don't know Todd, but his post is a most welcome take written with a rare honesty and rich in both substance and fact:

"Point of this rambling was that there are a 1000 reasons to say no to a deal, and only one reason to say yes. Problem is you get tired of saying no. You get tired of fishing without results and you feel like you are hunting with endless ammunition but with nothing to catch. At last, the compromise.

One could argue what really causes the compromise. It is not the time sink of the deal and diligence process, but maybe the lack of quality deal flow, too much LP money in the system, everyone wanting in on the Internet boom (again!), all the VCs hoping to sell there’ technology-less’ web startup to Google, or maybe even weak partnerships that don’t properly challenge deals because of partnership dynamics."
If venture investing interests you, please read the whole thing.