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April 01, 2005

VCs respond to Paul Graham's "VCs Suck" post

Quite a few VC bloggers have responded to Paul Graham's essay on "The Unified Theory of VC Suckage".

"I do not aspire to defend VC's. Like everything else, there are good people and bad people, good Germans and bad Germans, and good VC's and bad VC's," says Globespan Capital's Venky Ganesan.

"I won’t even try to defend my VC brethern since Paul’s theory is sound in many ways. He admits that he’s met a few VC’s that he likes, so there must be something messed up in the universe somewhere," offers Mobius VC's Brad Feld.

Fred Wilson of Union Square Ventures refers to Feld's days as an entrepreneur, when
his mantra was that all companies sucked in servicing their customers at some level and the goal for his company was to suck less. Entrepreneurs are always going to think that VCs suck at some level. But clearly some VCs suck more than others. If you must fund your company with VC money, it pays to do your homework and find the ones that are the exception to Paul's unified theory rule.

Arun Natarajan is the Editor of TSJ Media, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of TSJ Media's Venture Intelligence India newsletters and reports.