The Moral Compass of Investing
I will always be curious and befuddled on why VCs make certain investments. What was if that they saw in a business or founder to make them write a massive check?
The other thing I wonder about is the VCs that spend time with the competition of the company they are going to invest in absorbing all that information before turning those companies down to invest in when they knew all along they were not going to invest in them. What they were really doing is accumulating knowledge for the one they had already committed to.
As much as the ROI has shown that diversity works or that the conversation around investing in women has amplified there are still a large group of investors who toss money at the people on the other side of the table that look and feel just like them. White males with swagger. It’s just not a good look.
There is something about that swagger that gets huge capital without much there. It is one of my biggest frustrations in the world of investments. As an angel putting capital into a business and a founder that I believe in and not being able to convince a VC to see what I see is disheartening. I know it’s just part of the business but still. Perhaps they look at what I invest in and shake their heads.
Women don’t behave in that matter, aka they don’t swagger. The majority of us don’t have that “bro” behavior. I believe we are going to have a downturn and lots of capital will be lost but unfortunately, I don’t think it will change the investing thesis or moral compass of many of these investors. There has been so much conversation in the tech world about these investors but it still continues. Maybe we just don’t call them out enough? These days I am wondering if anything will ever change