Comments on: Entrepreneurs vs. VCs

By: Dug Song

Dug Song — Sat, 28 Mar 2009 02:47:20 +0000

you're a geek, not a nerd. geeks get it done. nerds don't.

By: Rizwan Mallal

Rizwan Mallal — Sun, 22 Mar 2009 12:17:03 +0000

VCs put fuel on entrepreneur's fire

By: Ed Engler

Ed Engler — Sun, 22 Mar 2009 02:58:06 +0000

Great discussions here – thanks for fostering the conversation, Brad! As an entrepreneur turned VC it's interesting to think about both sides of the coin. My first reaction is that of course entrepreneurs drive the ecosystem. They are the irrationally exuberant ones that drive innovation into the virtually immovable status quo. VCs work at reducing risk and managing risk/reward ratios to maximize returns for LPs. If you consider that VCs fund only a very small percentage of companies it becomes clear that they play a pretty small role in the overall ecosystem. That said, they do play some important roles. First, they offer a lofty goal perhaps second only to a big exit that entrepreneurs set their sites on. Second, they provide a constant stream of entrepreneurs with (presumably valuable) feedback on their business plans. Lots of entrepreneurs are too focused on their technology and fail to focus on the financial aspects of their business: the value to their customers, their addressable market and how they will become sustainable by generating profits. VCs often serve to remind entrepreneurs of those facts of life even when they don't make an investment. Third, VCs act as important hubs of the community, connecting many different organizations to the companies they invest in. Lawyers and accountants play this role too, but no other service provider has the vested interest in their client's success that VCs do.

In summary, you are quite right, Brad. VCs add important factors to the equation, but the entrepreneurs are clearly the engines of innovation that are at the heart of the ecosystem.

Ed
Pittsburgh, PA

By: Dan

Dan — Fri, 20 Mar 2009 20:52:02 +0000

Brad, next time we will have to make sure you make a greater portion of the interactive show. We were actually surprised to find few VCs attend some of the more pertinent panel discussions. We are happy that you enjoyed your Austin visit and similar to our syndication investment into Memeo, we would welcome the opportunity to syndicate another deal with Foundry, hopefully in Austin this time. Next Austin trip, lets connect. Dan – G-51

By: Adam_Lindemann

Adam_Lindemann — Fri, 20 Mar 2009 11:27:24 +0000

Brad, this is a very important post. With the exception of the few investors that started out as successful entrepreneurs like yourself, and a few investors like John Doerr and Michael Moritz that were made to be great VCs, I think its obvious to say that the business of venture creation happens thanks to entrepreneurs. The reason that this is so is because to the true entrepreneur, it is a calling , an art, a path and often a way to change the world in small and big ways. To the investor it is often just a way to make money. I hate to say it, but many venture capitalists are venture capitalists because they dreamed of being entrepreneurs but did not have the vision or the courage to do so.

By: David

David — Fri, 20 Mar 2009 03:09:35 +0000

Spoken like a true entrepreneur! Nice that you haven't forgotten your roots or the couragious ones!

By: ventureblogalist

ventureblogalist — Thu, 19 Mar 2009 16:51:55 +0000

Brad, I agree. Innovation needs to come from entrepreneurs. My last blog post covered this topic in response to Umair Haque's post where he attributed lack of innovation to VCs' investing habits.

By: gwinscott

gwinscott — Thu, 19 Mar 2009 13:55:08 +0000

kudos to you brad….for being so close to the entrepreneur and having a true vested interest in seeing all that you are associated with thrive and succeed. (duh). not all vc's are like that, esp from a full engagement standpoint. dont forget about the angels and micro-angels too who are out there working to seed ideas in hopes of one day they will reach a super-angel and vc funding level (need). it's pretty risky out there and entrepreneurs need to hear/be educated on all the good and bad stories…not to mention (the need for) a high degree of hand holding and mentoring…

By: peHUB » peHUB First Read

peHUB » peHUB First Read — Thu, 19 Mar 2009 11:26:50 +0000

[...] Brad Feld ponders the role of VCs in the entrepreneurial [...]

By: Brad Feld, On the Ecosystem. at VentureWoods - India's leading venture capital community

Thu, 19 Mar 2009 07:40:33 +0000

[...] Brad Feld on VCs, Entrepreneurs and the Ecosystem. Some of the highlights: I’ve long believed that the entrepreneurs are the motive force behind all entrepreneurial ecosystems – not the VCs, the other service providers, the government, or anyone else I regularly hear people – including very smart and experienced ones – assert other things such as overstating the importance of the presence of VCs to the entrepreneurial ecosystem. VC’s play a role in all of this, but it’s one that I regularly feel is dramatically overstated, misrepresented (including by many VCs) and misunderstood. We provide different resources and value than lawyers, accountants, investment bankers, and PR and marketing firms, but we are still simply one of the inputs into the entrepreneur ecosystem. [...]