Most venture capitalists won't read a business plan unless the entrepreneur is introduced to them by a contact.
Harvard and Yale concentrated with venture capitalists that got the best calls and brainpower. Very few firms made most of the money, and they made it in just a few periods. Everyone else returned between mediocre and lousy. When returns happened, envy rippled through institutional money management. The amount invested in venture capital went up 10 times post-1999. That later money was lost very quickly. It will happen again. I don't know anyone who successfully resists this stuff. It becomes a new orthodoxy.
Being a venture capitalist to me is like being more of a psychologist. So if you come to my office we have two chairs with a table in the middle. And we sit down and it's like, Tell me your problems.
At a basic level venture capitalists are arbitrageurs: they have access to more information than those with the capital, and access to more capital than those with information, and they profit by exploiting the mismatch.
Show me a first-generatio n fortune and I'll show you a successful partnership between a talented individual and society's invisible venture capitalist, the commons.
The great danger of dealing with venture capitalists is the 'slow maybe'.
A fool and his money will soon be departed applies equally to venture capitalists as it does to everyone else.
Venture capital is unscalable. Production equals the time each partner has.
