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More Start-Ups Have an Unfamiliar Message for Venture Capitalists: Get Lost
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More Start-Ups Have an Unfamiliar Message for Venture Capitalists: Get Lost

Erin Griffith
The New York Times, 2019
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Editorial Rating

8

Qualities

  • Eye Opening
  • Concrete Examples
  • Insider's Take

Recommendation

For years, start-ups of all stripes have been eager to fork over a chunk of equity for a hefty round of superstar venture capital (VC) financing. But today, according to financial journalist Erin Griffith, entrepreneurs are beginning to scrap that dream. They are rejecting offers of millions of dollars in VC funding dangled before them. Instead, founders are turning to new, alternative investment arrangements that give them more control. This intriguing look at a new generation of tycoons will interest financiers and entrepreneurs across all industries.

Take-Aways

  • Venture capital (VC) investors typically put money into a large number of start-ups in the hopes that huge profits from a few successes will make up for numerous failures.
  • But all too often, VC demands run young companies into the ground instead of building them to thrive in the long term. Critics also charge that VC networks are far from inclusive of minorities and women.
  • A small but swelling group of founders is rejecting the notion of accepting multimillion-dollar investments from an industry with a business model that hinges on quick expansions and exits.

About the Author

Erin Griffith is a New York Times journalist reporting on technology and venture capital.

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