Do you support sustainability, social responsibility, tech ethics, or trust and safety? Congratulations, you’re an enemy of progress. That’s according to the venture capitalist Marc Andreessen.

  • TropicalDingdong@lemmy.world
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    1 year ago

    I’m just gonna be straight up that probably none of you have any real experience with VC. Just statistically, it’s probably the case. It’s anecdotal, but I want to share my story.

    I helped found a company about three years ago. It’s a software/ services company that focuses on specific kinds of climate change risk. No I won’t tell you who we are. Anyways, me and my cofounders are first time founders, although we both have built business segments within companies, this was our first time in our own. We did try for VC that first year. We basically got rejected all around. What I learned is that the basic function of VC isn’t to fund good ideas. It’s a filter to keep opportunities in the hands of those who already have them. It’s a kind of social filter to make sure only the “right” kind of people get funded. It’s pure credentialism and institutionalism. Anyways, several of our competitors took the cash. As a result, they ballooned in head count and we’re forced to do things the way the vcs expected them to. As a result, almost all of these companies failed or pivoted. We didn’t get funded. We got rejected by all fronts. Instead we just built our client base one brick at a time. Well, now their customers are our customers. We’re signing deals with the big names and still haven’t taken VC money. We’ve got the best in class technology and they are bleeding money.

    VC is a poison pill. It’s not there to drive innovation but to filter down who has access to opportunities. Their ideas about what works or doesn’t are bad, and largely driven by the culture they are apart of. They worship elitism and credentials, but will the respect for those who are willing to do the work. It’s inherently extractive. They add nothing. Want to kill a business? Take VC money.

    • KarmaTrainCaboose@lemmy.world
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      1 year ago

      This comment doesn’t even pass the smell test.

      If every company that took VC money failed, VCs wouldn’t make any money.

      The reality is MOST VC investments fail, but the few who make it are home runs. This is how they make money. The risk/reward of your company was just not a favorable investment for them. Whether it’s because you went to an Ivy League or not is irrelevant.

      Without VCs, many of those homeruns would never be able to get off the ground and the US economy would be significantly less dynamic

      • TropicalDingdong@lemmy.world
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        1 year ago

        You are free to take your great idea to VC and see if they get funded bro. I think they are a complete joke at this point.

        • KarmaTrainCaboose@lemmy.world
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          1 year ago

          I don’t have a good business idea, not everyone has to. That’s not even what we’re talking about.

          VC is clearly not “a joke”. All you have to do is Google “major companies that took VC funding” to see the impact of it. Of course this leaves out the thousands of others that failed, but long term the winners are going to have a very positive impact on driving innovation.

          You may say “those companies would have succeeded anyway” and maybe so, but I doubt it would have happened nearly as fast, if at all.

          • TropicalDingdong@lemmy.world
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            1 year ago

            VC today isn’t VC 20 years ago isnt VC 40 years ago.

            VC today has ridiculous expectations on ROI and it re-enforces poor decision making, which, imo, brings down companies that might otherwise have been successful. Its part of a culture that was propped up by access to ridiculously cheap money. Modern VC is a dice roll at best, maybe worse.

    • UnderpantsWeevil@lemmy.world
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      1 year ago

      It’s pure credentialism and institutionalism.

      Not a coincidence that folks with Ivy League degrees get showered with money, while kids from state schools end up doing all the drudge work that keeps infrastructure running.

      VC is a poison pill. It’s not there to drive innovation but to filter down who has access to opportunities. Their ideas about what works or doesn’t are bad, and largely driven by the culture they are apart of. They worship elitism and credentials, but will the respect for those who are willing to do the work. It’s inherently extractive. They add nothing. Want to kill a business? Take VC money.

      Its an excellent way to cash out of a mediocre idea. Also an excellent way to elevate a mediocre idea from a regional/niche/insider scam to a national stage.