Saying No To VCs
from the take-a-hike dept
A good article from the founder/CEO of a tech company who's turning away all the VCs who call him offering to invest money in his company at ridiculously low valuations. There are some quotes about how many tech companies simply become employees of venture capitalists, which takes away all the incentive. Of course, at the end of the article they do point out that the company has taken money - though mostly from corporate venture investors. While many business publications used to always explain that management should expect to only own 5% or less by the time a company is ready to go public, I think many businesses are beginning to realize the dangers of such arrangements. The people with the decision making power don't necessarily know what's actually going on.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
