How VC failure breeds founder-hostile behavior: The adverse selection cycle in venture capital

Summary

The article examines a critique of venture capital behavior, centered on Garry Tan's observation that less successful VCs tend to become more adversarial toward founders, squeezing value from their best startups out of necessity, creating a vicious cycle of adverse selection. The piece suggests that while this criticism may seem broad-brush, it reflects a problem venture capital has created for itself through an emerging identity that homogenizes the asset class.

Source

Twitter / XHow VC failure breeds founder-hostile behavior: The adverse selection cycle in venture capitalcredistick.com