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Mendelson: 50% of VCs Hurt Entrepreneurs, Only 25% Help

Jason Mendelson · 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group · Jan 30, 2017 · at 8:00

Jason Mendelson, co-founder of Foundry Group, evaluates the overall value add and impact of venture capital firms on founders.

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“In my opinion, at least 50% of them hurt entrepreneurs and 25% of them don't do any good. There's only really a quarter of the VC firms that I've worked with that really help the”

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Opinion
Mendelson: Half of Board VCs Are Neither Respected Nor Transparent
“Just on the boards that I'm on, a good half of the VCs that I share these boards with, I don't respect. I don't think they're transparent.”
Jason Mendelson Jan 30, 2017 ▶ 8:21 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group
Opinion
Mendelson: Claiming large startups must be in Silicon Valley is myopic arrogance
“And I think it's laughable that there are people on the coast and primarily in Silicon Valley who openly say you can't build a big business in the Silicon Valley. It is that myopic arrogance, which makes me, it makes me laugh because that gives us great opport…”
Jason Mendelson Jan 30, 2017 ▶ 14:40 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group
Opinion
Mendelson: Venture capitalists are lemmings who retreat in downturns
“Venture capitalists in general are lemmings, and when the times are bad, they get out of the market.”
Jason Mendelson Jan 30, 2017 ▶ 20:01 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group
Insight
Mendelson: A thriving startup ecosystem requires a culture that respects failure
“More importantly, the pillar of having a culture of failure is super important. I'm from Detroit. And for many years, they had creative class, they had money, they had lawyers, they had people who could work there. They had great ideas, but they lacked the abi…”
Jason Mendelson Jan 30, 2017 ▶ 15:39 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group
Insight
Mendelson: Late-Stage Venture Investing Is Purely a Financial Exercise
“If we were late stage investors, totally different. It's a financial exercise at that point.”
Jason Mendelson Jan 30, 2017 ▶ 17:43 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group
Disclosure
Mendelson: Foundry Group's highest returns come from downturn investments
“Some of the best deals we've ever done were with entrepreneurs in a down period where no other VCs would invest in them. We were able to, you know, invest in these great companies because we were the only people out there writing checks, and we had outsized re…”
Jason Mendelson Jan 30, 2017 ▶ 20:16 20VC: How 50% Of VCs Hurt Entrepreneurs, How To Build A Relationship Of Trust With Your VC and How Entrepreneurs Can Detect VC BS with Jason Mendelson, Co-Founder @ Foundry Group
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