VCs Fund Their Friends
from the well,-of-course dept
I imagine that anyone who is at all involved with entreprenuerial activities or venture capital won't find this story the least bit surprising. It seems a professor did some research and found that the overwhelming criteria on which a venture capitalist basis his or her funding decision is based on how well the VC knows the entrepreneur or what the VCs friends have to say about the entrepreneur. It is, most definitely, a "who you know" sort of business. I don't think anyone denies this, but most people who are in that business point out that the ability to "network" is an important business skill, and so they expect a successful entrepreneur to be able to network themselves into a position where the VC (or the VC's friends) know them.
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