Thursday, January 28, 2010

Lessons from business folk

Venture Capitalist: "Finding a company is like dating; you need to get along at first go otherwise you can't even think of marriage."

Well, it was a guest speaker session where 2 VCs had been invited. They were the 2 partners in a $15 Mn fund only operating on seed investing. Towards the end, I asked a question; originally, I wanted to ask the question with my opinion embedded inside, but then I kept it open-ended. I asked, "Why have you guys decided against expanding your fund or going into latter stages' financing?"

The guy answered, "It has to do with lifestyle choice... The 2 of us had had some experience in the corporate world, the 2 of us are committed to this company and we knew our capabilities. We figured that we could oversee 7-9 companies and we preferred being with our families in our free time. We did not think that we would like to work 80-hour weeks and our limited partners understand this level of commitment."

In effect, he had said that one needs to draw a line and say that this is how much I want to grow, not beyond this... I prefer this to that, and thus I will base my career. Now, this works especially if you are an owner or part owner of a business. May be even WB took the longest time to realize something similar.

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