VCs encourage startup founders to take risks and not be afraid of failures. Failures will be the badge of honor and many invaluable lessons learned for future endeavors.
VCs fund the company and puts up a big company logo with enchanting praise for how proud and fortunate that they are for working with such great entrepreneurs.
The problem begins here....
- If things work out well, the entrepreneur is stamped as "Past Investment Exits" on the VC's website. Awesome outcome regardless of size of the exit.
- If things don't work out and the venture crashes and burns, the company is permanently banished from the VC website like the investment has never happened.
Fair or unfair?