This article from Thomas Owen is really worth a read. I’ve found his view really forthright and cruelly true.
So there you have it: Forget all the nonsense about providing capital for growth and creating great companies. Today’s venture capital is just an elaborate protection racket, making sure no one breaks your startup’s virtual kneecaps. And the best part? It’s completely legal.
It’s becoming true more and more. When you allow VCs to take a percentage of your company, you are kinda buying something from them. Relationships, introductions, credibility. And all this stuff is far from being cheap.
Technorati Tags: business 2.0, luca filigheddu, thomas owen, venture capitals
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