It’s fairly accurate. Venture Capital investing is NOT where wealth unable and unwilling to lose everything should participate.
The recent popularity of “startup” and “entrepreneur” has made it en Vogue to also be an Angel or VC.
Here’s the thing…
That’s a problem
A lot of unsophisticated investors giving advice.
A lot of money that will disappear and give investors a bad taste
A lot of bad experiences that will leave entrepreneurs with a notion that VC doesn’t have their best interests in mind (a trend we’re already seeing in all the criticism of VC)
Even the article comes across as an eye opening awakening. That’s troubling!
Venture Capital Firms are partners. They should not be in business if they expect to perform like banks or Wall Street. They exist because SOME who can greatly afford it, want to support innovation and they’re comfortable with the risk of losing the money so as to have an impact, nurture new ideas, foster entrepreneurs, and develop a portfolio. There is an off chance that they’ll uncover a big win and recover the investment, and more.
This is a realistic assessment. We shouldn’t be shocked by the fact that YES, most VCs do poorly. They’re not in it for the money (alone). If you’re engaging with investors who don’t behave as such, run.