Capital vs People

I have a friend Charlie who is a serial entrepreneur and he says that venture capital "values capital over people". That’s a criticism that has a ring of truth to me (as opposed to much of what Adeo said the other day).

We just spent the past day with our investors and we are blessed to have a collection of great people behind us. They provide the capital that we get to invest in startups. And I am incredibly grateful for their support. But it isn’t capital that drives the startup ecosystem. It’s the entrepreneurs who drive it. And it’s important to remember that.

Back in 2005, I wrote a post called The VC’s Customer. In that post, I made a point publicly that I’ve been making privately for years. VCs that serve the entrepreneurs win and VCs that serve the market lose.

I think in times like we are in, it’s worth remembering this. And I want to thank Charlie for suggesting to me last night that I return to that post.