Wednesday, April 13, 2005

Venture Capitalists state of mind

Like I wrote a few days ago, I'm pretty interested by the venture capital industry after my MBA. After 3 years in a VC-backed startup, this move would make sense. The job of a venture capitalist looks pretty attractive: mentor companies, evaluate new attractive ventures, stay close to technology, interact with a bunch of diverse people...

Yet, there is at least a big drawback: I think you become a negative person after some time. Because you refuse 9 investments out of 10, your mind is switching in a systematic 'no' mode and you are always on the lookout for what could go wrong in a business opportunity. I'm not saying it's a bad thing ("Only the paranoids survive") but I'm not entirely sure I'm that kind of person. I'm a more positive person, trying to imagine the potential success of a venture instead of its likelihood of failure. And this post is making me think twice about this industry.

Are you a VC or an entrepreneur? I'd love to hear your opinion about this industry.

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