Venture Capital Psychology


Over the years, I have met hundreds of angel investors and venture capitalists. They are a very strange bunch. For my startup, I periodically sent out newsletter to a couple of thousand, select core group. A few hundred of those are venture capitalists, that I have met over the years. Hence, it puts me into a position of making introductions. If your startup is hungry and ready, I can make introductions to investors in that particular sector, send you to some very important meetings. However, in order for that to happen, you just need to convince me that your startup has legs. Negative: Let's start with the negative venture capitalists, because most of them are. Money is an important tool and it creates greed in people. Hence they change, for the worse. The health goes down and pretty soon they become at the mercy of the world. Once they start to go down, they like the take others down with them because misery loves company. It's a very competitive world out there and the negative venture capitalists easily break their value system, for very small gains. In today's economy, most investors are feeling the chaos within. This is because the rule book has changed. People measure venture capitalists differently now. The VCs must adjust, or lose all their popularity. The adjustment has to be made towards positivity. I have been ganged up by very powerful VCs before, where they cut down all the deals for me. However, that never stopped me from doing what I needed to do. But nevertheless, I am always aware of their actions. Positive: The positive venture capitalist has moral values and ethics. If the ethics are established, then they don't take on small baits and fall. The investment is done on character, rather the product because if the synergy is established between the team, there is no limit that can't be reached. The positive venture capitalist is like family. There is laughter and love. There is care and investment in the long run. The investment is not just money, rather influence as well. If a teacher opens up their heart and share it with you, there is no substitute for that. All greatness happens, where the right people are in place, to teach you, to groom you, to make you a better person. These are the qualities to look for, not just for short stint, but long term impact. You are the bow, the student is the arrow. Send the arrow out to the longest distance.