VCs and founders want different things, even when VCs used to be founders. VCs chase financial returns and the next big deal. Taking VC money locks you into hyper-growth, which shapes every fundraising decision after.
Our thesis at CoolWater is that a lot of venture capitalists, when they start out, are founders, but their priorities are a little bit different.
Are VCs basically the devil?
You, the founder, and venture capitalists are aligned. You're trying to both build a big business. Venture capitalists are only as good as their next best deal. You are nothing without financial returns. The bigger the fund, the harder it is to generate great returns.
You understand what they care about, what they go through, what their own struggles are. You're much better positioned to raise capital from them.
When you take venture capital dollars, you're signing up for a hypergrowth story. If you're getting the right pieces, fundraising can be easier.
