VC Jeff Clavier: Founders, don't make money, take ours!
Palo Alto-based venture capitalist Jeff Clavier wants startup founders to stop trying to make money. Why? Because when founders start pulling in around $300,000 a month, they start to think they don't need VC. Which is correct. And bad for business. So here's a refresher on what Clavier and other VCs would prefer they do.
- Ignore revenue.
- Run out of cash.
- Ask VC for cash in exchange for large handfuls of equity.
- Ignore revenue more. Run out of cash, again.
- Shovel equity in VC's direction, asking for more cash.
- Repeat steps 1 through 5.
- Accept VC-picked board members.
- Stop ignoring revenue.
- Sell to VC's friends at Google.
- Don't let door hit you on the way out.