tag:blogger.com,1999:blog-8288183.post113451027595794328..comments2023-11-05T04:50:49.218-05:00Comments on Vowel Movement: Terry Pratchett on Venture CapitalAnonymoushttp://www.blogger.com/profile/16377117761292204691noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8288183.post-1134523468887489782005-12-13T20:24:00.000-05:002005-12-13T20:24:00.000-05:00There's a new Australian show called "Dragons' Den...There's a new Australian show called "Dragons' Den" in which 5 VCs are put in a room, and individuals with small companies come in with a 5 minute pitch looking for investment.<BR/><BR/>It doesn't take long to realise that the small business owners and the VCs have completely incompatible goals.<BR/><BR/>The business owners expect that they look attractive if they can offer a good return on investment, where investment purchases a small portion of the company (say, 20%).<BR/><BR/>The VCs are looking to take over a company that looks attractive, making sure they can direct what their money is doing every step of the way (I don't need to understand <EM>your</EM> business! I just need to understand how to <EM>do</EM> business!). Oh, and even though the business looks good enough to buy out, it's still worth no where near what you say it's worth.<BR/><BR/>I already understood a portion of the VC process, but this show demonstrated quite a bit more for me. It's actually a little too disturbing to watch too often, since it's the same ruthless process over and over.<BR/><BR/>If you hadn't already told me, I'd have worked out by now that you only approach a VC if you're not interested in being a part of the business anymore, and are prepared to throw away whatever you've invested in it.Paulahttps://www.blogger.com/profile/03653112583629043593noreply@blogger.com