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January 26, 2006

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Funny, Doc Searls cites English Cut... which Tom and I started without VC... for about $500, happily bootstrapping ever since.

Well, besides the point that I don't know if a 2002 Mercedes is recognizable as a 2002 - if this really is a funded company why the hell should he not lease a Mercedes? Stupid people don't go for a Mercedes, they go for a Lamborghini and such. :)

A Mercedes is a safe care where the founder can drive and keep himself save.

And I may sound cynical, but if this is the behaviour of the VC now, what will it be later? Starting with such a small thing and making a big deal out of it instead of asking "what is this" ...

And yes, your world probably needs some disruption too. :))

Nicole, all worlds need disruption. Like flowers need sunshine. ;-)

Just a thought – VC’s manage a lot of money. VC’s have beautiful offices (if you ever been to Sand Hill Road you’d be amazed), VC’s parking lots always, always, have incredible cars on them. On average VC’s lose money on 7 out of 10 deals, maybe breakeven on two and hopefully hit one out of the ballpark.

So when the LP’s pull up for their meetings to see where their money has gone do they ever tell the VC’s to change offices, sell their cars or take a lesser salary. Nope.

You shouldn’t judge a book by it’s cover. I don’t care what car someone drives, I don’t care where they live – that’s their business – what I care about is customers, customers, customers. If I execute and deliver value to a customer then the employees and the stakeholders will be rewarded which is what it’s all about.

And the VC’s can judge me by business metrics (which is after all what they invested in) rather than the car I drive. It’s easy to disguise the car – much harder to disguise the bank account at the end of each month.

Hugh, but flowers do like sunshine. :)

Huh. Now you've got me thinking. And that's disruptive. Bad Rick / Doc. Bad!

Timing is everything.

Rick, I've been mulling over the idea that the VC industry needs disruption for some time now and after collecting my thoughts I finally completed the (long) post today.

You can find it on my site.

Interested in what you have to say about disrupting the industry.

Rick,

As someone who has experienced the "how dare you approach me without a reference" stare and numerous other forms of humiliation on the financing trail, I certainly appreciate your thinking which is like a breath of fresh air. You have almost convinced me to cold call you if and when my new startup needs series B funding. :-)

VCs are full of shit and so are entrepreneurs. It's just sad that VCs get to drive the nice cars and own wineries while entrepreneurs have to hack away in shitty offices in Santa Clara.

Isn't what you described is what they call in B-school NANOMANAGEMENT ?

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