Enough with the excessive "value-add" posts.....please.........begin rant: I have advised to find the best VC when raising capital and not just the ones who give the highest valuation. Nevertheless, I think a lot of VC's are a bit delusional as I may have been too. Ever more VC's are blogging about all this value-add they deliver and the topics of their posts are often so detached from the reality out there that it's comical.
There is absolutely nothing wrong with the following fact: VC.....it's not about you....it's about your money! This is OK. It's natural.....you'll get over it. And...sssshhhh....don't tell anyone.......we know you're in it to make money too!
So, we have that over with. Why is it OK? It's pretty simple....as an entrepreneur I want to do everything possible to succeed. I know that I have to run my business properly and with a bit of luck I can be successful. Yet this all needs to be financed. At some point, I may even determine I need venture capital to fund growth. Hence I go raise money from VC's if I believe I fit their model.
Let's be realistic though.....and mark my words.....no entrepreneur ever decided to go for venture capital funding because he was lacking value-add from a VC. First and foremost, it was always triggered by the NEED FOR MONEY. Smart entrepreneurs know that it's never just about the money and here, you blogger VC, are very correct. Enough with the Kool-Aid though....without your money most entrepreneurs wouldn't really care much about you. It's OK, you still have your triathlon, cycling or foodie friends.
The harsh reality of the start-up world though is that the entrepreneurs whom VC's chase usually don't need the value-add offered and those who need it most can't get a VC to spit in their direction. Serial entrepreneurs with multiple exits basically pick and choose whom they let into their rounds. At the other end of the spectrum you have folks who can't even get in the door of a VC.
Let's be honest here....all this "value-add" blogging is nothing more than advertising. Each VC is trying to "out-do" the other VC's in the hope of dealflow. It's rough out there getting into the best deals. The tide goes up and sometimes the VC's have the upper hand. The tide always turns though and entrepreneurs get the advantage. It's natural....so enough of all this "value-add" marketing speak......entrepreneurs want you first and foremost for your money.....end rant!