Re:Lecture 15: How to Manage
by AndrewKemendo on Wednesday November 12, 2014 @12:25AM
(#8594153)
"The guy you're holding a conversation with probably thinks himself superior to you. Let him. You have nothing to lose and everything to gain from maintaining this illusion."
I would agree if there was some equality between who is getting shafted. SV is replete with examples of founders or employees getting screwed over and burned up by contract clauses or other financial shell games.
Re:Lecture 15: How to Manage
by whatusername on Wednesday November 12, 2014 @04:15AM
(#8594611)
As an outsider -- isn't SV also full of failed investments and the like? Perhaps not deliberate screwing over - but I thought the figure was something like 2 in 10 actually making a ROI.
(Perhaps it comes down to the old tale of the pig and chicken making breakfast. The chicken can always make more eggs.... The pig not so much)
I think that there is some element of truth to that, for some people. Remember that VC is first and foremost a financial profession: they have a fiduciary duty to their LPs to get the highest returns possible. They invest in a different asset class, but they are money managers responsible for allocating capital to the teams most likely to make good use of it.
I also think that there are some founders who are clearly in it for the money as well. Probably moreso of late, with the gold rush mentality these last couple years.
I'd disagree that this is everyone. I think that there are still a large number of founders around who genuinely want to change the world. Many of them are not seeking venture capital, or if they are, they are getting turned down. But I also think that among this population, VCs are seen as the commodity, a resource to be used when their startup has proven itself and needs to scale. Sam Altman used to say many things to this effect, back when he was on the entrepreneur side of the table.
One of the most illuminating quotes was something I read in Dale Carnegie, to the effect of "The guy you're holding a conversation with probably thinks himself superior to you. Let him. You have nothing to lose and everything to gain from maintaining this illusion." It made it clear that there's nothing wrong with different people having different perspectives on who's got the higher status in the relationship, or, more cynically, on who's using whom. In fact, the world runs on this status ambiguity - nobody would ever do a deal in which they think they are going to get screwed, so the only reason we have any commerce at all is for both parties to believe they are the ones getting the better end of the deal. We wouldn't be able to function without Lake Wobegone. (There's another interesting psychological finding where the only people with a realistic self-image are clinically depressed; apparently, if you lack this inflated sense of self-worth, it really does make you unable to function.)