The Gordon Ramsay anecdote is actually really good, in that in my experience VC’s get a LOT of say in what your business ultimately becomes.
I worked with someone that was, in all fairness, absolutely clueless about what they wanted, and wanted some VC alongside their rich parents money. The VC took a huge chunk of the business, and ultimately their business launched as something that was completely different to what they thought it would be - because that’s what the VC believed would give them some return. The business went bust in less than a year and launched for maybe 2 months?
Much like how Ramsay says “your Jamaican restaurant is shit, I’ve remade it into an Italian restaurant because there aren’t any nearby”, taking a lot of VC money almost certainly means they’ll want an equivalent say in your business. It’s not free money, and it absolutely fucks a lot of people up when they take that money and realise that their dream isn’t theirs any more.
The Gordon Ramsay anecdote is actually really good, in that in my experience VC’s get a LOT of say in what your business ultimately becomes.
I worked with someone that was, in all fairness, absolutely clueless about what they wanted, and wanted some VC alongside their rich parents money. The VC took a huge chunk of the business, and ultimately their business launched as something that was completely different to what they thought it would be - because that’s what the VC believed would give them some return. The business went bust in less than a year and launched for maybe 2 months?
Much like how Ramsay says “your Jamaican restaurant is shit, I’ve remade it into an Italian restaurant because there aren’t any nearby”, taking a lot of VC money almost certainly means they’ll want an equivalent say in your business. It’s not free money, and it absolutely fucks a lot of people up when they take that money and realise that their dream isn’t theirs any more.