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The problem with venture capital

A reader writes that there are too many VCs out there who do not understand what it means to be a VC.


    The problem with venture capital

    In response to the March 6 Perspectives column by Robert von Goeben, "How VCs are hurting, not helping":

    A more accurate telling of this story couldn't have been told. I'm the CEO of a privately held company, and we've been in fundraising mode for almost all of the three years of our existence. A majority of it has been wasted by spending weeks--and in some cases months--with VCs who eventually say we didn't meet their investment criteria.

    Whether it's true, or whether it's some cowardly way of saying, "Not interested," it is a huge waste of time and money for entrepreneurs.

    There are too many VCs out there who do not understand what it means to be a VC. They think because they have a Harvard or Stanford MBA they can be a VC. It just isn't that simple.

    The problem with venture capital firms is that they are no longer run by entrepreneurs; they are run by MBAs and bankers who don't understand what it means to run a small, money-starved company. The VCs who have are usually hidden at the high levels of huge firms and rarely get their hands dirty anymore. It's a sad situation.

    The venture capital community is what made America different than any other country for creating wealth and making dreams come true. It just isn't that way anymore.

    Daniel Schiappa
    CEO, Vingage
    Herndon, Va.



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