part 1 is here
Guys who have raised a lot of money seem incredibly successful. Any entrepreneur would be pleased, especially when respected gentlemen managing billion-dollar funds “believe” in them. In theory, it all looks beautiful: capitalists provide cash, advice, and connections, along with PR and inspiration.

But there are some problems with other people’s money.

Firstly, funds make large bets. And they need large wins. Ben learned this the hard way: the fund that invested in him didn’t want to make 10 or 25 million dollars. They needed at least a hundred million.

Secondly, big venture capitalists have become very selective and rarely make more than 2-3 investments a year. They are looking for startups that show explosive growth in large markets. A company that will be sold for 50 million dollars bringing them a 30 percent profit won’t make a big difference for the fund owners.

Some investors would rather crush a small, good startup to death trying to turn it into a unicorn than agree to a modestly positive deal. And the founders will have to pass up a great offer for them personally just because the big boss doesn’t find it grand enough.