Oh so O/T - Venture Capitalists

[brindle]

Has anyone worked for a company with VC investment?  Might sound a stupid question but how did it differ day to day from working for a normal company, is the risk very high?

What are you experiences?

[FW500]

Yep. Against my advice the shareholders of the company I'm the FC for too VC funding a few years ago. They sold something in the region of 25% of the company. The VC's now have over 50% and the company is a very different place.

The key thing is that despite whatever the VC's say, their ambitions for the company (or themselves) may not be the same as the current shareholders.

Day-to-day to begin with the VC's took a backseat, only getting involved at monthly board meetings. Now they're involved day-to-day. Parachuted their own MD in and almost ever decision is passed by the VC's (as it should be with a majority holding).

The cash injected was welcome of course but my belief was that if we held out for a year and paused the companies growth we could have avoided the funding requirement. All I'd say is be cautious - if you need the investment be sure the VC's are there to support and not interfere.

[Martin Keene]

Yes.

Ventue capitalists are *only* in it for the short term and a quick buck. They will have a business model that will have them off loading the company in 5-10 yeras ish. Whether that is in bits, as a whole or asset stripped, depends on which makes the most money for them.

Sorry.