This is an important and subtle one. Investors assume that if they're hearing about you first from you, you can't be any good. If you were good, they'd already have heard about you, because you'd have found a way to get introduced to them by someone they trust.
Yes, the investors do "assume", but, for information technology investing, their ROI for the past 10
years sucks (details in a Fred Wilson blog).
VCs don't know the right people to know
a significant fraction of people who are
really "good". A really "good" startup
entrepreneur
likely won't know anyone a VC will "trust".
If a VC can't evaluate my work from what
I write, then they won't be able to be
effective on my Board; I won't be able to
hope to be successful with them on my Board;
and I won't be able to have them on my
Board or have them invest.
I want to be successful in business, but
on average VCs are not very successful.
Khosla had some recent, sharp remarks
on VCs.
Comments
Yes, the investors do "assume", but, for information technology investing, their ROI for the past 10 years sucks (details in a Fred Wilson blog).
VCs don't know the right people to know a significant fraction of people who are really "good". A really "good" startup entrepreneur likely won't know anyone a VC will "trust".
If a VC can't evaluate my work from what I write, then they won't be able to be effective on my Board; I won't be able to hope to be successful with them on my Board; and I won't be able to have them on my Board or have them invest.
I want to be successful in business, but on average VCs are not very successful. Khosla had some recent, sharp remarks on VCs.