Venture Capital Isn't Evil (And You Probably Don't Need It)

14 Feb 2023 · 0 min

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In this brief monologue, Dharmesh Shah addresses first‑time entrepreneurs, urging them not to pursue venture‑capital funding unless truly necessary. He clarifies that he does not view venture capital as inherently evil, but argues that seeking it often diverts founders from solving real customer or industry problems to instead solving the investors’ problems—a misalignment that can hinder product focus and growth.

If you're a first-time entrepreneur, I'm going to leave this message about why you shouldn't raise venture capital. Not because it's evil, which I don't think it is, but I don't think it's necessary for most of you. Like, too many entrepreneurs get started and then go off and try and raise capital. That's a mistake. Because as soon as you try and do that, essentially you shift your mode from solving a customer's problem or an industry's problem into solving the investor's problem. And those are not the same problem.