An entrepreneur has turned the tables on venture capitalists by creating TheFunded, an online community where heads of start-ups expose devils and saviors in the world of moneyed investors.
Adeo Ressi founded the unprecedented online forum last March to show entrepreneurs how to swim among financial sharks and not be devoured.
He is so wary of powerful venture capitalists that he remained anonymous until last month.
"The entrepreneur basically walks into a wolf's den as a lamb," Ressi said. "We are going to change that."
TheFunded lets start-up chief executives rate venture capitalists and share stories of dealings with them.
The Web site reveals complaints of venture capitalists being arrogant, duplicitous and even possibly stealing ideas.
One venture capital firm is described as "smart, but dangerous ... Don't get sideways with these guys or the tires of the bus they throw you under will hurt."
There are stories of investors changing terms in final moments or ousting founders in order to sell firms for fast profits.
"I think TheFunded is a good source of anecdotal data that helps inexperienced entrepreneurs learn a little bit about how the Silicon Valley works," Morgenthaler Ventures general partner Drew Lanza said.
"But I would caution that the plural of anecdote is not data, and young entrepreneurs should take what they read on the site with a grain of salt," he said.
Ressi vets each member to make certain they head companies and then erases identifying information so they are anonymous on the Web site.
TheFunded boasts nearly 6,000 chief executives from around the world.
"These people are pouring their hearts out with fairly detailed tales of good treatment and bad treatment," Ressi said.
TheFunded can be a "healthy and constructive" resource, as long as people consider that entrepreneurs can react emotionally to rejection, said Allegis Capital founder Bob Ackerman, a former entrepreneur.
"Entrepreneurs' companies are their babies," said Ackerman, a spokesman for the National Venture Capital Association. "When you tell someone their baby is ugly, it gets personal."
Weeks ago, TheFunded added an arena for posting financial details of venture capital deals. The forum reveals terms "all over the map," Ressi said.
This month TheFunded will begin letting entrepreneurs pitch ideas to chief executives that have funding. Financed executives can then recommend worthy pitches to their investors.
"TheFunded, at the end of the day, gives anyone with a vision the ability to bring it to market," Ressi said.
Human Global Media founder Brady Brim-DeForest, who is on his fourth start-up, credits TheFunded with shining light on how venture capitalists do business.
"They are now more accountable for how they do business," Brim-DeForest said. "We've created a sense of community and leveled the playing field a little bit."
Venture capitalists complain that anonymous comments lack authority and that they can't post responses on the Web site.
"It is really just a group vent," said Storm Ventures managing member Sanjay Subhedar. "It gives a one-sided view and there is no chance to rebut."
Subhedar defends the venture capitalist community, saying there are natural checks and balances in place to keep deals fair. He sees TheFunded as useful to "newbie or novice" entrepreneurs.
Lanza said he favors illuminating how Silicon Valley operates but has reservations about unbridled anonymous trashing of venture capitalists.
"To some extent, TheFunded is part of a culture that rewards gossip and tolerates anonymous attacks on individuals, and I regret the coarsening of our society in general," Lanza said.
‘NO SECURITY RISK’: The Railway Bureau reassured the public that the technicians’ activities were limited to technical guidance and did not involve sensitive systems The Railway Bureau yesterday said it had invited eight Chinese technicians to assist with an airport MRT construction project. The bureau issued the confirmation after an Internet user said Chinese nationals had entered the construction zone of Taiwan Taoyuan International Airport’s Terminal 3 project. They asked why “individuals from an enemy state” were allowed access to such a major national infrastructure project, which raised serious concerns over Taiwan’s industrial safety, sensitive systems and information security. The bureau’s Northern Region Engineering Branch Office said subcontractor Taiwan Handle Industrial Co (台灣手把工業) of the Taoyuan airport MRT’s “Contract No. CU05 Project A14 Station Civil, MEP &
The National Chungshan Institute of Science and Technology yesterday showcased its locally developed variants of the Vision 60 robotic patrol dog, which it plans to deploy on the nation’s outlying territories in the South China Sea. The variants were produced under the Joint Lab project — created by the institute and domestic companies — and assembled with domestically produced motors, lenses and artificial intelligence (AI) systems alongside licensed tech from the US, Missile and Rocket Systems Research Division deputy director Jen Kuo-kang (任國光) told the media event at a military base in Taipei’s Dazhi (大直) area. Taiwan has built up its strengths
TIT-FOR-TAT: The US allegedly revoked the visa of a Chinese national working at Xinhua News Agency in the US in response to Beijing’s expulsion of Vivian Wang The Presidential Office yesterday condemned China for expelling a New York Times correspondent from Beijing following the newspaper’s interview with President William Lai (賴清德), saying the move highlighted Beijing’s suppression of press freedom and its threat to international news media. Taiwan has noted a series of recent incidents in which Beijing used similar tactics to “threaten and pressure international media outlets and journalists,” Presidential Office spokeswoman Karen Kuo (郭雅慧) said in a statement. “This concerns not only press freedom and freedom of expression, but also the safety of journalists, and Taiwan and relevant partners are paying close attention to the situation,” she
NOT IMMEDIATE: Taiwan has a chance to appeal the proposed 10 percent tariff before it starts, while other countries face a 12.5 percent tariff from the trade office Taiwan is among 60 economies determined by the US to have failed to impose or enforce a ban on the importation of goods produced with forced labor, according to a notice released on Tuesday by the Office of the US Trade Representative (USTR), which proposed imposing an additional 10 percent or more tariff on them. The USTR in a statement said that following an investigation, it had determined under Section 301 of the Trade Act of 1974 that the failure of the 60 economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is
RSS