VC firms are…responsible for the full life cycle of a company: they find it, help it grow, open up a Rolodex and sell it. What you’ve had is the firms go out and raise a fund and take a management fee, so you get paid millions of dollars for doing no work, and it takes years to get results. You have an incentive to raise larger and larger funds to get a bigger fee. With larger funds, you have to find ways to invest all that money or give up the fee. The VCs have investors who want a return in three years, so they will lower the bar and make a worse investment.
We set up a different system…
Sounds like a great company with an exciting culture.
