It’s undeniable that a large percentage of venture capitalists, roughly 99%, often fail to offer meaningful assistance, connections or sales assist to startups beyond mere funding. Elon Musk has previously voiced similar concerns about the role of VCs / Investors. With limited government support for startups, VCs frequently become one of the few funding avenues available. Vinod Khosla has been quite frank about the reality: around 90% of VCs / Angel Investors are unable to deliver significant returns on their investments. More often than not, their contributions lack value beyond financial backing. Simply channeling money into a venture doesn’t automatically translate into success, and ineffective board members from VC firms can further complicate matters such us big dilutions or changing agreements against the founder's benefit. The once unique VC culture of Silicon Valley that Vinod experienced while building Khosla Ventures has now spread globally. Being a VC in the tech sector has turned into a trendy profession, with Vinod’s statistics highlighting this on an international scale. Many individuals, from entry-level analysts to partners, often lack the hands-on experience needed to create products, build teams, or launch companies. Without the essential grit and determination, they may find themselves on startup boards as part of a learning process, which can lead to a lack of genuine value addition—or even harm— to the startups involved. #Startups #Entrepreneurship
“90% of VCs add no value to startups, and 70% even harm them.” — Vinod Khosla In a blunt assessment of the VC world, Vinod Khosla, founder of Khosla Ventures, questions the real value that most venture capitalists bring to the table. After decades in the industry, he argues that most investors aren’t just unhelpful—they may actually hold startups back. This raises a critical question: can the wrong investor be a greater liability than no investor at all? What’s your take? Have you seen VCs truly make a difference, or are they often more of a hindrance than a help? Share your thoughts below. Join 100,000+ founders and VCs who receive these insights in my weekly newsletter: https://lnkd.in/dtifw4mC