As an expansion stage venture capitalist for 11 years, I still find it strange when I explain to people how a venture capital firm is different from a typical business. Here are some of the strange aspects of being an expansion stage venture capitalist:
- Our target customer segment is very small
- We want to meet all the potential customers in our target segment, but we need to turn away most of the potential customers
- We only want a few new customers each year
- We pay our customers a lot of money to start the relationship
- We want our customers to grow their business much, much more than we want to grow ours
- If our customers don’t grow their businesses, then we will go out of business
- If we are lucky, our customers end the relationship and pay us a lot of money to end it
- We need to constantly rebuild our customer base, since 100% of our customers leave us
- We want our customers to be taken away by a large company
- Even better, we want our customers to be taken away by a really large, swarming mob!
I am sure that there are a lot of other strange things about being a VC. What did I miss?