I had a funny conversation with a startup CEO this morning. We agreed that the trouble with most venture capitalists is that they don’t actually want to be venture capitalists. They actually want to be private equity investors. After all, they want completed management teams, fleshed-out product plans, material revenue, and a finished product with minimal technology risk, etc.
Trouble is, early-stage companies rarely/never have those things, so they’re re forced to settle. It pisses them off to no end — leading to all sorts of silly and protracted discussions — and then they take out their exasperation on poor investees in board meetings. Nasty.