Investors and Startups Beware; the VC Business Model is very Transactional
When the VCs win, you may not
I read an amazing post by Harry Stebbings, about the transactional nature of VCs.
I listened to the podcast, and it changed my thinking about how VCās work.
Like every entrepreneur, the VCs themselves, have a business model.
Their business model, is to raise money for a fund, distribute the funds, earn the carry - regardless of whether there is a return on the fund.
Then, go raise more money for another fund.
The podcast episode is a very thought-provoking - makes you kind of think twice about the different business models of the people you pursue to invest in your company, or park your money with.
Listen to it!
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