Venture Capital

Bad Moves VCs Make

Feb 21, 2024

Explore the murky world of venture capital with Jon and Peter as they discuss bad moves made by VCs. From last-minute deal changes to delaying investments for lower valuations, they provide valuable insights on the dynamics between VCs and founders. The debate on ethical practices like bribing founders and the importance of incentivizing the founding team adds depth to this engaging conversation.

26:14

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Quick takeaways

VCs prioritizing personal gain over the best interests of the company highlights an ethical dilemma in venture capital.

Introducing new terms at the last minute in a deal negotiation is considered unethical and can compromise the company's future.

Deep dives

Bad VC Move: Threatening to Veto a Deal for Higher Returns

In one example, a VC threatened to veto a company's exit deal unless their class of shares received a large dividend. The VC's motivation was to secure a better return, disregarding the potential negative consequences for the company and its stakeholders. While the frustration of the VC can be understood, it highlights the ethical dilemma of prioritizing personal gain over the best interests of the company.

Introduction

2min

Dealing with Founder's Sudden Decision to Sell

2min

Navigating Investments and Acquisitions

6min

Investors' Delay Tactics

4min

VCs and Founders: A Debate on Bribes

9min

Analyzing Founder Incentivization and Equity Dilution in VC Funding

3min

Join hosts Jon Bradshaw and Peter Harris as they dive into the world of venture capital with a candid discussion on the "Bad Moves VCs Make." In this episode, they share war stories and shed light on questionable tactics employed by some venture capitalists.

From last-minute deal changes to questionable negotiating strategies, Jon and Peter explore scenarios where VCs may not always have the best interests of founders and startups at heart.

Throughout the episode, Jon and Peter provide valuable insights into the dynamics between VCs and founders, offering perspectives on when certain actions cross the line and become detrimental to the startup ecosystem.

With a mix of real-world examples and thought-provoking analysis, they aim to empower listeners with the knowledge to navigate the sometimes murky waters of venture capital.

Whether you're a seasoned entrepreneur, an aspiring founder, or simply curious about the inner workings of the VC world, "Bad Moves VCs Make" offers engaging discussions and practical takeaways to help you better understand the complexities of startup funding and investment.

Tune in for an insightful conversation that explores the nuances of VC decision-making and the impact it can have on the success of startups.

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Follow Jon Bradshaw

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Follow Peter Harris

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Instagram: https://instagram.com/shodanpete

Youtube: https://youtu.be/Hy9DsuFzTH4