Posted by: danreich | August 28, 2008

What makes a good VC?

If a strong financial background validates a VC’s ability to correctly run numbers. What validates a VC’s ability to correctly evaluate new markets?

Great Post:

One thing I was thinking (and I can say this… since I was a finance
guy myself) is that perhaps one reason why there aren’t more NYC VCs is
that a lot of them half Finance roots and that’s not necessarily the
best skills set for doing venture. When you’re evaluating completely
new markets, sometimes the numbers prevent you from leaps of faith.
Risk, in general, isn’t exactly something that’s supported here in the
city, with some exceptions. I think it’s no accident that a lot of the
startups are getting angel funded by random hedge fund guys who are used
to swinging for a few fences every now and then.

You ran a company and James, Jr. is a tech guy… It’s not often that
someone goes from running a big Fortune 500 company and then goes to
start a VC fund… and there aren’t a lot of long term technologists
here in the city either. No offense to bankers, but I think running
something and building something are critical skill sets to
understanding venture.

Stuart gets a free pass on the banker knock because he taught himself to
program. 🙂

Originally posted as a comment by ceonyc on This is going to be BIG! using Disqus.


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