The Broken VC Model: Suggestions for a Hollywood Ending
This just in: Twitter Co-Founder Ev Williams Believes All Startup Advice Is Wrong (Yet it is valuable anyway).
“Why is it wrong?…Deep down we know we can’t possibly apply everything we read and often even if we could, we shouldn’t.”
Ditto to investors. We often hear that investors look for newcos focused on big markets (fair enough – everyone wants a unicorn/substantial ROI); were founded by successful serial entrepreneurs (again, fair enough: less handholding; potentially lower risk/known entity). Still, again, they can’t possibly apply everything they hear or read and even if they could, they shouldn’t. Which may contribute to why the VC model is broken.