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Venture Capital - Thursday, September 8, 2005

VC Due Diligence Through Fucked Company

When investing in Web 2.0 companies, many VCs see resumes from entrepreneurs about their experience "building 1 million member communities" and "raising $40M" but glaringly without the kicker that the company continues to float on the Nasdaq. Most VCs might not admit it, but some cop to the fact that they research entrepreneurs on Fucked Company. One should be suspicious of posts from embittered employees complaining about cocaine abuse, poor attendance, office infidelities, and bankruptcy -- but also remember that these nuggets are often dead on.

So advice to entrepreneurs with checkered pasts and an ugly FuckedCompany search result: it's best to be upfront about it, acknowledge that you were part of the get-big-or-go-home herd and that you learned from it.