Why VCs

One perk that I see of raising money from VCs or having connection with them is that they make it so damn easy to find good talent because they have such network and also that if you ever quit your or exit your venture you have a pretty good network to rely on.

They know who you are and they keep you inside their ecosystem by placing you in some organization or other that needs your skills.

It’s a terrific ecosystem but not one where you should sell out your company’s equity at the initial days.

After you have some traction, let them come and you negotiate the valuation.

Yeah, in a way the VC ecosystem in itself is kind of like the exclusive clubs that you read in novels like The Barbarians at Gate.

All the deals and the leaps in growth and career come from those clubs because of the connections you make there.

Essentially, you have to see the VC ecosystem as some kind of a club and not a place to get your money.

VC is not a money granter per se. It is a membership that has some perks of capital.

The game here is essentially that, okay, give us a slice of your company in exchange for some cash, in exchange for the connections we have, and in exchange for the aura you get from being associated with us.

Like, if you are getting 10 million from some bank, and you are getting 10 million from some VC, the intangibles from the VC are a lot higher.