Paul Allen sums it up “Only take money from VCs if you believe they will add value. Don’t do it if you view them as a “necessary evil.” Many serial entrepreneurs in Silicon Valley go to VCs even on their 3rd or 4th startup–not because they need the money, but because they know having a team with experience and connections actually improves the likelihood of success, and of creating a bigger pie.”
This is fine for the serial successful entrepreneur but if your first brush with VCs leads to down-rounds you may be put off for life. However the people who “get lucky” get addicted! With VCs, you have to keep running and running fast and you have “joint” control and go for a Bonanza business. You are going to have to grow really big to justify their investment, involvement and time.
Hat tip: Geoff Jones
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