[HN Gopher] VCs using scouts means founders get the short end of...
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       VCs using scouts means founders get the short end of the stick
        
       Author : AnhTho_FR
       Score  : 8 points
       Date   : 2022-12-05 21:00 UTC (2 hours ago)
        
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       | moloch-hai wrote:
       | Founders get the short end regardless, as a rule, with prominent
       | exceptions.
       | 
       | A VC firm is handed a billion dollars they must invest by quarter
       | end, _somewhere_. They get a zillion proposals, mostly trash. The
       | number of obvious winners is much smaller than needed to absorb
       | the $1B, so they have to fund a lot of less attractive choices.
       | 
       | Dumping all that money on losing propositions is fine with the
       | investors, but the VCs hate to waste it. So, they have ways to
       | milk the losers. In the old days they would make them buy Oracle
       | or other licenses, for kickbacks from sales people. They have a
       | stable of people owed favors they may appoint to C-suites of
       | startups, at inflated salaries. HR departments are good for
       | bleeding; startups rarely have an HR VP in mind.
       | 
       | The experience with VCs will vary enormously depending on whether
       | yours is one of the few picked to succeed, instead of being
       | milked.
        
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       (page generated 2022-12-05 23:01 UTC)