I had a conversation today with Christian Cotichini, entrepreneur and founder of a company called Make Technologies, and somebody I’ve known for years. We spoke of many things, but one topic that I thought was worth a brief posting was our experience of how taking venture capital distorts a business. It’s easy to make the mistake of thinking of your new investor as a “customer” – and your business plan as the “product” they have purchased from you. Your business model can become a kind of artifact, describing a theoretical five-year exit strategy, instead of a living document, with day-to-day relevance.
Technorati Tags: Venture Capital, Entrepreneurship, Business