Just over two years ago, I wrote about Venture Capitalists and how their use these days was not the money but rather their contacts; it was their address book and not their cheque book that entrepreneurs should be interested in and, to this day, I agree. That’s not to say I’d wouldn’t be interested in a VC or business angel wanting to help me set up the best co-working place in the world (but I digress).
Hank Williams on “Why does everything suck” writes:
“VCs generally don’t add that much value beyond cash. They will try to say otherwise. Unless they are famous for adding such value (check Google) they are probably lying. Aside from the fact that they are probably incapable of adding much value, even if they could, VCs are extremely busy managing their portfolio, meeting new companies, dealing with limited partners, etc. If you want your company to succeed, you will really have to do it yourself. Believing that a VC is going to add some incredible value that is going to help make your company is foolhardy.”
That’s almost the opposite of what I said back then and these days I’m inclined to agree. I’ve done enough networking over the last decade to see me through though I’m always interested in meeting new people and listening to new opinions (which is why I’m enamoured with NiMUG, OpenCoffee and other social events).
I’m certainly man enough to admit that I don’t know everything and that there are people that I want to spend more time with just to learn the pearls of wisdom given out so casually (and no, I’ve not met any of them at $BIG_COMPANY.) I’ll also admit that last night, while furiously tapping in code, it dawned on me that I might actually be too old to do anything else entrepreneurial. I had my shot and created a moderately successful company that will likely last a long time but never buy me a sports car. Since then I’ve been too pre-occupied to do much more than plan.
The new plan, after the wedding is all done, is to finish off some things I’ve started. I’ve got half a dozen domains sitting as constant reminders of unfinished work. And the code I’m writing is a means to an end so that I can stop depending on other people to do the graft and start depending on myself. Eating my own dog food so to speak.
Denny K Miu writes on lovemytool.com about VCs:
“VC’s have been my best friends and my worst enemies, in ways that are not always within my immediate control. In the process, ironically, I have come to respect Venture Capitalist as a profession, which I believe is the least understood if not the most misunderstood. And I am convinced that mistakes I have made with VC’s (eventually turning many of them into my worst enemies) were a result of my inexperience as a CEO compounded by a total lack of understanding of who VC’s are and what they do for a living.”
I’ll be honest. I don’t even like the idea of a Venture Capitalist: I just want the money. Doing stuff on the side just means it remains small fry and you don’t get to realise the big plan that kept you awake until the birds started twittering (presumably from their mobile phones) the next morning. So what do you do? Get in a VC, beg your way through the interviews (trying not to sound like an insufferably arrogant prick) and then be happy with the 3% of equity you retain?
I am amused by how my own opinion has changed over the last two years, borne out of frustration.