Venture capitalists and entrepreneurs local ways to make money the same – only different – venture best

Venture capitalists (vcs) and entrepreneurs are a poster child couple for the notion local ways to make money of the love-hate relationship. Any vcs who have been around the block more than local ways to make money a time or two is certain to have their stories local ways to make money of inept, dishonest, and/or overwrought entrepreneurs. Ditto any entrepreneurs who have spent any serious time courting local ways to make money or managing relationships with vcs. And yet, the VC/entrepreneur nexus is the greatest innovation engine the world has local ways to make money ever seen. Go figure.

As it turns out, vcs are themselves entrepreneurs of a sort. While vcs are in the money when entrepreneurs approach them local ways to make money as supplicants, most vcs get their money the same way the entrepreneurs local ways to make money courting them get theirs. They persuade a number of people who control a lot local ways to make money more money to send a small portion of it their local ways to make money way. The VC song and dance is based on pretty much local ways to make money the same sort of “invest with us and you’ll get rich(er)” narrative that entrepreneurs make when they pitch vcs.

This concept – the VC as entrepreneur – first occurred to me when I crossed over from the local ways to make money entrepreneur side of the risk capital table to the VC local ways to make money side. Before I even got settled in on the VC side, I found myself wrapped up in the same activities that local ways to make money consumed so much of my time as an entrepreneur: preparing a business plan and pitch deck, and knocking on innumerable doors in search of risk capital. Raising venture capital was pretty much a repeat of my local ways to make money entrepreneurial experience. And, it was equally as challenging and frustrating.

The similarities don’t stop there. As with entrepreneurs, vcs who have a track record of success find the local ways to make money money-raising process a lot easier than those who don’t. Real “newbies” to the VC game will find their capital raising campaigns local ways to make money much more challenging than folks who have “been there, done that” already – just as first-time entrepreneurs do. (indeed, most of what are marketed as “first-time” venture funds include one or more partners who have had local ways to make money important and successful career stops at other venture fund management local ways to make money groups – just as most startups in the major venture centers include local ways to make money folks with experience at other high-risk/reward startups.) and just as entrepreneurs raising later rounds of financing for local ways to make money their startups, vcs raising post fund I pools of capital will find local ways to make money that their likelihood of success is tightly correlated with the local ways to make money success of their earlier funds.

The first is that vcs are coaches, while entrepreneurs are athletes. The VC role is to facilitate the success of their local ways to make money portfolio entrepreneurs: to make the entrepreneur’s job easier, and performance better. That is a huge difference, and one that trips up many a VC; particularly, vcs transitioning to the business from the entrepreneur side of local ways to make money the table. Few things can turn a VC/entrepreneur relationship sour faster than a micromanaging VC who confuses local ways to make money supporting management with supplanting management. Or, an entrepreneur who won’t accept coaching.

The next biggest difference between vcs and entrepreneurs is that, in any given relationship, the VC is like the chicken at breakfast – very interested in the meal – while the entrepreneur is like the pig – fully committed to it. VCs look at deals as pieces of a puzzle: their success is tied to a portfolio of investments. For entrepreneurs, the deal is the whole puzzle. The singular focus of their attention, and measure of their success. Those different perspectives can make for very different levels of local ways to make money interest and commitment; differences that can generate a lot of misunderstanding and friction. It’s a lot easier for the VC/chicken to walk away from the table than the entrepreneur/pig.

And so, my thinking is that the love/hate dynamic that characterizes so many VC/entrepreneur attitudes and relationships stems from a mix of similarities local ways to make money and differences between the two parties. Similarities and differences that, if properly appreciated by both parties, can help make their working relationships – and personal ones as well – more productive and less stressful.

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