
Why 70-80% of VCs do harm - DanielRibeiro
http://blog.venturelynx.com/2014/01/04/why-do-most-vcs-destroy-value/
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richardjordan
This is true of all investors not just VCs. There is often a misalignment of
interest between investors and startups without the founders ever realizing
it. I've experienced the situation of raising money where one of the investors
had incentives so strongly misaligned that they undermined the investments of
the other investors and forced the company down a very destructive path - and
though for founders and the other investors all was lost, they were a small
investor and actually most likely would consider that they had a net positive
outcome when their underlying interests were taken into consideration.

Be very, very careful from whom you take money. There really is such a thing
as bad money. No founder thinks they're naive - but we all start out if not
naive certainly inexperienced in this regard. Always try to build your company
so that you can say no to money if you cannot get the best investors you want
in your company, because you aren't so desperate for money you'll take it from
any source.

Just my hard earned 2c.

~~~
lowglow
Would you mind blogging about your experiences in an article on
[http://techendo.co/](http://techendo.co/) ?

I think a lot of entrepreneurs don't realize exactly this:

> There really is such a thing as bad money.

~~~
richardjordan
so i need to think about that - i was asked by one of the incubator runners -
and a friend of startups everywhere who doesn't need naming here - to do a
write up of my experience and i balked mainly because it's hard to do without
specifically naming names, and because investors all talk to each other and
are always better friends with each other than with entrepreneurs - meaning
i'm weak, they're strong, and if i embarrass them i probably end up
suffering...

that being said it's been a few years and i should probably get over myself
and relate the story - it's just that i know for a fact the investor in
question is a litigious pain in the ass and has sued others over criticism of
their behavior before

