This is a really good point. I've heard the term Chicken Hawking in a very, very different context but it works here as well.
I think the illuminating bit of information is there is a real difference between the worldview of a VC and a founder. VCs have no clue what's possible or not (and in my experience don't actually understand businesses because most haven't run thenm- they went to Biz School, got their MBAs and that's it.)
So, in todays environment where "founders" are usually kids right out of college with no actual business experience, then their perfect "mate" is a VC who also has no experience. The kid is young and ambitious and has no clue on the limits of his own possibilities-- and the VC is just looking for a payoff without real work the size of the kids ego.
IT's a great match and it explains a lot.
Like why real engineers and real business people building real businesses have a lot more trouble raising money.
I don't doubt the existence of clueless VCs who throw their money around, but that's no different from any other form of business. They'll soon lose that money.
The problem is that, given the anecdote of another commenter with intimate knowledge of the situation, Michael's explanation doesn't match reality. I suspect cases like this often defy simple rationalization, but as outsiders we don't have the facts to correct our theories.
I think the illuminating bit of information is there is a real difference between the worldview of a VC and a founder. VCs have no clue what's possible or not (and in my experience don't actually understand businesses because most haven't run thenm- they went to Biz School, got their MBAs and that's it.)
So, in todays environment where "founders" are usually kids right out of college with no actual business experience, then their perfect "mate" is a VC who also has no experience. The kid is young and ambitious and has no clue on the limits of his own possibilities-- and the VC is just looking for a payoff without real work the size of the kids ego.
IT's a great match and it explains a lot.
Like why real engineers and real business people building real businesses have a lot more trouble raising money.