Why are there startup wars between the venture capitalists and the startup CEOs?


There is currently a disruption going on. The venture capitalists, thanks to twitter are becoming very aware of their investments. There is a paradigm shift, between old investors and the new super angels, that have turned into venture capitalists. There is a war going on, however you have to be within the network to see it. There are massive exchange of words. In vedanta, the first principle is ‘no harm’. Back in the Krishna days, harm was physical. However, thoughts, words are as bad harmful to someone, as much as physical. So hence, the current word exchange is signs of war. Call it the venture capital mahabharata for our Indian audience. The venture capitalists have investments in usually a few players in a sector, take for example mixpanel and kissmetrics, within the startups analytics space. The venture capitalists expect perfect visibility, for example how are all the startups doing? Sure enough, an analytics company has all the data, so it’s up to the founders and venture capitalists, how much data is ok to expose. Another example is that the venture capitalists are usually fighting for their investments. Only the first one, the leader is the unicorn, the rest are followers. When there is no clear winner in the market, there is a lot of copying of ideas going on. Hence the venture capitalists are always mad at each other. There is a competition for deals as well as who is going to produce the next unicorn. The money value has changed. The venture capitalists are watching the entrepreneurs very carefully. This is needed to define the future of America since the grassroots are startups. There has been great super angels that pushed for startup visa a couple of years ago, that encouraged more foreign founders to come to United States and start companies. These super angels are the reason why we have seen such a huge volume of startups recently. Now what happens next remains to be seen.