Venture Capital is broken. But in all the ways VC’s want it to be.
Afterall, venture funding knows exactly what it’s doing. They are smarter, they are better, and they are more beautiful than the founders they invest in. They know it and they want you to believe it.
Don’t believe the hype.
The ‘not so’ secret is that the venture capital business is similar to the movie making business. For every blockbuster success you’ll find a literal mound of flops behind the curtain. The truth is that only 8% of all funded* startups actually return invested capital. Those stats sound abysmal, but even more so when you consider what they represent.
These are companies, with founders, with employees.
Those founders accepted funding, expecting more than a check. They expected a catalyst for growth that extended beyond money. A survey performed by Kaufman Fellows dissected the needs of founders and what ultimately motivated them to accept a check.
Areas where founders had initially expected to receive the most help, sales, marketing and relationships, didn’t materialize or were never leveraged. Perhaps even more disturbing, when an inverse survey was performed, VC’s articulated that these were in fact the areas where they were providing the most value.
There is a massive disconnect in the venture capital value proposition. It’s a known disconnect, and for capital allocators, an acceptable one. At the end of the day, VC’s are financiers. But founders and startups need more than capital, they need expertise that drives results.
We know this, because we are founders. Operators. Go-to-market experts.
We’ve sat in the same seats building, growing and exiting businesses of our own while also consulting for thousands of the top mid-market and enterprise companies.
We believe it’s unacceptable to see 92% of founders as a write off.
That’s why we created In Revenue. We couple GTM expertise, with capital, to empower founders and their startups with what they need to grow and succeed.
Welcome to Operator-Immersive Capital.
To learn more about how, read the manifesto.
*Corporate Finance Institute
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