Peter Thiel’s CS183: Startup - Class 8 Notes Essay

blakemasters:

Q: How important is strategic advice from VC?

A: Probably 80% of the value add is capital, and 20% is advising. Superangels are very popular right now. Their pitch is that they can help you build your business. You look at their portfolio and its 150-deep. For the average company, how much time or energy can they actually devote? VCs have fewer portfolio companies, but they have the same constraints. They can add value by providing strategic advice, build syndicates for funding, and explain processes that are familiar to them but new to you. But in terms of the mythical model of the hybrid VC-McKinsey consultant helping you build your business, hand-in-hand, no. That doesn’t happen for most portfolio companies. It’s mathematically impossible. VCs who insist they do that for everyone aren’t being honest.

Everybody should recognize their limits.

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    Everybody should recognize their limits.

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44. dwellman said: keep posting these. Great reads!
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