“VC is not essential, but it helps!”
Jeff Bussgang knows the secrets of the world of Venture Capital (VC) and the insights of entrepreneurship. He has played on both sides and writes about it in his blog, Seeing both sides. His book Mastering the VC game gives more details on this high-stakes game with interesting interviews to successful entrepreneurs, including Twitter’s Jack Dorsey and LinkedIn’s Reid Hoffman. Jeff has kindly answered to HitBarcelona questions.
- Seeing both sides… to stay where? Which one of them do you prefer?
I love doing what I am doing today – I enjoy working with my partners to help build numerous great companies in parallel rather than one at a time in a serial fashion.
-The VC game is much more established in the US than in Europe… Do you think VC is essential to be more effective in financing and launching startups?
I wouldn’t say VC is essential, but it helps! It helps to have more financial resources and it helps to have experienced board members and advisors who have “seen the movie before” and can provide invaluable advice along the way.
-Randy Komisar says web startups might not need VC. What do you think about it?
It all depends on the type of start-up and the situation. If the company can get their product out and build revenue quickly and focus on a small niche, perhaps he is right. But if the business is ambitious and is pursuing a large market opportunity, then even so-called capital-efficient businesses tend to raise capital in order to scale quickly and build distribution.