VCs Still Trying To Discourage Competition

from the suck-it-up dept

Last week we wrote about some big name venture capitalists whining that there were too many other VCs with money, and they were making it more difficult for their startups to compete, since too much money was flowing into the market. Apparently, one article on the subject wasn't enough, and now they've convinced the Financial Times to write yet another article warning that the "glut" of money could hurt startups. While it is true that startups that raise too much money without a good plan or the ability to manage that money wisely may end up being hurt, but this complaining from the VC community is ridiculous. They're basically saying they can't handle the changes in the market place. These are the same VCs who always tell their companies about the importance of changing with the market - and here they are refusing to do the same thing. Besides, if they're worried about markets being flooded by bad VC money, then shouldn't they know not to make that bet? Also, if it's true that the "real" value from the VC is from their advice and connections (as many will claim) then why should they care who else gets the money?