A few weeks ago we looked at the fact that all VCs aren’t created equal and the importance of seriously checking them out, instead of being blinded by the money.
And last week we considered how VCs invest in similar companies and then play favorites.
Our team issues rankings of the most active investors in an industry or geography pretty regularly and occasionally, an investor reaches out and the conversation goes a bit like this.
Investor – “We should be on your ranking.”
Me – “Ok cool. Let’s ensure your data is updated and we’ll edit the rankings as need be.”
Investor – “I can’t tell you the deals. They’re stealth.”
Me – “We can’t put you on the ranking unless we know the deals. We’re a data company so the rankings are based on data.”
Investor – “I can’t tell you the deals. They’re stealth. But we should be on that ranking.”
Me – silence
If a VC won’t answer a valid question from an impeccable source, one that’s privy to more business secrets than any five (ten?) Wall Street firms combined, why would they answer yours — or be truthful if they do?
And thanks, Anand, it’s nice to see a VC on the receiving end for a change.
Image credit: CB Insights