Many entrepreneurs see themselves someday as becoming venture capitalists because they think the venture capitalists are the people with all the money. Indeed, over time many of them have made a huge killing and many have lost a small fortune. It is amazing that so many people look up to the venture capitalists and of those in the know often referred to them as vulture capitalists, because really that's what they are.
But he with the gold makes the rules and that is the game. If you want their venture capital money that you have to sell your soul and go along with their game plan, which is probably a return on investment of 10 times their initial first round of funding within three years.
If not the company will be salt and all its assets and they're cashing out, whether or not they made any money. Why do they play the game so tight, because it is a disciplined game and that's the only way they have found it works. If you have fallen in love with your business plan and your entrepreneurial dream did venture capital is not the way to go.
If however you just want to make money and you really don't care and you have a really good idea at the right time in the marketplace that you might find excellent company with a venture capitalist.
Once you do two or three deals this way and become what they call a serial entrepreneur then perhaps you are ready to play on their side of the fence and become a cheesy venture capitalist. And I mean that in the most sincere way. Truly I do, I just love them. Consider all this in 2006.
