What a good VC is

At one point, Conway started to rattle off some names of who he thought the top tier VCs were. Andreessen Horowitz, Kleiner, Sequoia, Benchmark, Greylock, Accel — Mike urged him to keep going as to why those are the best, but Conway said those are just the ones off the top of his head.

I'd venture to guess what makes these guys who they are: class. In general, the best investors become that because they add value to the companies and treat the founders with respect.

It is that simple.

It is remarkable how many investors fall down on one or both accounts.

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4 responses
Great point! But what do you mean exactly when you refer to respect in contrast to other VCs who do not treat others with respect? I'm curious to know some specific details. Thanks Gary.
Faisal -- a lot of investors don't have conviction. They don't know tech. They don't know design. They can't objectively determine what teams and products will win or lose. As a result, they have to rely on social cues to decide whether or not to invest. Anytime someone tells you "well... come back to me when you have your round farther along," it is that potential investor asking you to give them a free call option.

This is why the fundraising process is often confusing and fraught with peril for entrepreneurs. Investors who don't know what's up or down, and can't make up their minds.

These are also the investors that tend not to be able to help companies very much on the things that matter -- how to build the product, how to market the product, building customer and biz dev relationships, etc.

Garry -- Thanks for making that clear; it makes a ton of sense. That being said, let me ask you this: Is it better to then actively look for Angels or VCs for seed funding? Or at this day and age, does it not matter since as you say there are VCs know how to treat the Entrepreneurs with respect?

I was under the notion it's better to settle with Angels since they "care" more -- which is why I've applied to the YC 2012 Winter round.

Garry, would like to chat about this some time -- interesting post and comments.