Part of the reason there’s so much backlash against VC funding is that when you end up driving your business into a wall at 100mph, it’s easier to say “I shouldn’t have raised that money” than it is to admit “I shouldn’t have spent that money.”
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Not true - ENORMOUS pressure on the founders who end up raising VC money to go for hyper-growth. VC need to markup the valuation of their portfolios to raise their next fund and earn 2% management fee. How do you markup without higher growth in portfolio cos?
I agree that there is pressure. In few circumstances are founders forced to spend.
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If the monthly MIS that goes out doesn't reflect hyper growth, investors do come bearing down. To stave them off, founders end up spending on marketing to chase hyper growth. Hence VC may not ask founders to directly spend, but outcome of insane growth expectations is spending.
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Yes, I agree that expectations influence spend.
End of conversation
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