Photo: Joi via Flickr
Dave McClure, an angel investor who competes with VCs to fund startups, went on a rant about VCs at a Vancouver conference.Among the things said:
- Wearing a suit around tech talent is stupid. “They are scared sh*tless of people in sales in suits,” McClure said.
- On the whole, VCs are terrible at making money. McClure says 75% don’t even return even 1X capital to investors. “The returns absolutely suck,” he said.
- VCs are “stupid, insufferable, arrogant, f*cking arseholes.” He says most don’t know how to build communities or good products, and they don’t back startups early enough.
The language and the rantiness are kind of McClure’s “indie” schtick. Sometimes its grating, but sometimes he gets at the truth. It is true that lots of venture capitalists aren’t very good at their jobs. On the other hand, we can’t remember the last time we saw a VC in a suit.
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