news.volyx.in

VCs aren’t your friends (openvc.app)

553 points by taubek · 820 days ago · 374 comments on HN

Article summary

The article discusses the relationship between venture capitalists (VCs) and startup founders, highlighting that VCs are not friends, but rather investment professionals looking for returns. A recent incident where a VC passed on a startup due to an outdated pitch deck sparked controversy, but the author argues that the VC did nothing wrong. The article emphasizes that VCs have to make quick decisions based on limited information and that founders should not take it personally. Founders should understand that VCs are looking for signals, including the quality of the pitch deck, to determine the potential of a startup.

Main themes

  • VC-founder relationships
  • Startup funding
  • Pitch deck quality
  • Investment decisions
  • Founder expectations

What commenters say

  • The interest rate at the time of writing should be considered when discussing VC behavior, as it affects the availability of money and the terms of investments.
  • VCs are not looking for friendships, but rather for investments that will generate returns, and founders should not be offended by their rejection.
  • The quality of a pitch deck is crucial in determining the potential of a startup, and an outdated deck can be a red flag for VCs.
  • Some commenters argue that VCs are not truly adding value to startups, but rather just providing money, and that founders should be cautious when seeking VC funding.
  • Others believe that VCs are necessary for startup growth and that founders should be prepared to pitch their ideas and demonstrate their potential for returns.
  • There is a debate about whether profitability is a necessary condition for VC funding, with some arguing that it is not a requirement, while others believe that profitable companies are more attractive to VCs.
  • The commenters also discuss the role of signals, such as the date on a pitch deck, in VC investment decisions, with some arguing that these signals are arbitrary and others believing they are important indicators of a startup's potential.