When venture capital hurts start-ups

Peter Kerr at Stick reports raising venture capital can hurt a new business. The title of his  Should you bother with venture capital funding…the numbers suggest no says it all. He quotes one investor who points out there is an inverse correlation between the amount of venture capital invested and business success. In other words, the companies that raise the least amount of funds tend to do best.

Kerr lists five reasons why this happens. For me the first one is the killer:

Pandering to VCs is a distraction:

Raising capital demands a lot of time and energy, when an entrepreneur is better off convincing prospective customers to buy – or perhaps learning why they won’t.

And that’s my experience of raising money. Often it can take almost as much effort to raise a sum from investors as it can to earn the same amount as income.

Reddit, Twitter badge results

One month ago I added a Reddit badge to posts on this site. It was purely an experiment to see if anyone used it. The results are in. Reddit didn’t get a single click. Not one.

Over the same period the Twitter buttons got hundreds of clicks.  I’m not sure what that says, but I’ll disable the Reddit button in the next day or so and test something else.

Does anybody reading this site actually use Reddit?