There’s nothing wrong with building a small, self-sustaining, bootstrapped company. But it’s not morally superior either. Lambda School couldn’t have 1/1000th the impact we can of what we plan to if were small and bootstrapped. (1/n)
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Replying to @Austen
It’s not that VC is harmful for society. It’s that it’s harmful for the individual companies they invest in (with some exceptions). VC is in the business of sacrificing individual companies for the benefit of the average. It sucks to be the individual in this game.
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VC is in the business of providing capital to great companies with enormous growth potential in exchange for equity. that’s... really the whole thing. sorry
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Yep, agree. And if it turns that your growth is not meeting the original expectations, you get sacrificed for the greater good of the collective average.
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Not really. If your growth isn’t as good as promised generally you get written off as a loss for VCs and keep the money. Another way to think about it is VC lets the few wildly successful companies subsidize the experimenting of all the others.
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Replying to @Austen @dvassallo and
Before they write off such companies would they not try every avenue to squeeze growth? And how does that process transform the company’s culture. Seems like that’s where caution against VC comes from?
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it is undeniable that many venture capitalists are gross losers. but being a gross loser is not a business model. founders fund doesn’t attempt to manage any of its portfolio companies, has never in history fired a founder, and is doing okay!
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Replying to @micsolana @_broun_ and
What alters founders’ behavior isn’t the fact that you never fired them. It’s the prospect that you *can* fire them. They know what you expect, and they follow. Because they’re beholden to you.
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