7 days ago
Advice: Sometimes You Get What You Pay For
The Rules From A VC Who Doesn't Fit The Mold
VC has a mantra - pay it forward. It's the notion that, in this innovation gig, we are all in it together and therefore sharing what we know with others benefits the entire ecosystem.
For the most part, this philosophy is hugely generous and benefits both the entrepreneur and the investor. Many would go so far as to credit this philosophy as being the core differentiator that has made and continues to make Silicon Valley a great place for innovators and innovation to flourish. People are generous to a fault, with bits of advice filling the air up and down Sand Hill Road.
Investors, in particular, have embraced this philosophy so much so that there is an old adage: 'If you want advice, ask for money. If you want money, ask for advice.' Unfortunately, what I have found over the years is that some of the advice shared with entrepreneurs, specifically by investors, amounts to nothing more than a sound bite.
I still recall from more than twenty years ago the first bit of advice I heard VCs consistently give entrepreneurs. Every panel it seemed had investors express some version of the sentiment, 'raising VC is like a marriage.' Now, I love a good sound bite as much as the next investor. A well-phrased, brief statement can shortcut a shared language into a shared understanding. However, this particular sentiment has always proved problematic for me for the simple reason that marriage does not have a universal language nor does it have a shared experience across cultures, genders, and individual experiences.
So, let me give my take on what I think raising VC means for an entrepreneur and her business.
All of this is to say, I don't have a pithy sound bite for raising venture capital, primarily because of #1 on my list. This is serious stuff and cannot be - nor should it be - boiled down to a cute phase that ultimately leads to confusion, frustration and broken promises.
