How many of you are following venture capitalist companies on Twitter? Not many I would suggest and I doubt you would be surprised if I told you most VC companies on Twitter are utter rubbish.
VCs, I know, I know, are the devil but it is beyond belief that they treat social media with disdain at the same time as investing in social media. It’s almost as if they’re asking people to hate them.
Startups can’t live without VCs and in a proper, perfect world following VCs on Twitter would be imperative for any young company. Tweets about the companies they’re interested in, sectors they want to be involved in, engagement with the startup community, interesting tips, the whole works. Startups would LOVE to be led by VCs.
But like the strange old business they’re in, nobody makes the effort. You would think that any business where 90% of investments failed the penny might have dropped. Must work harder, must do good work, must be better… might even have a decent Twitter handle with reputation and authority.
The business isn’t even booming. According to research company Cambridge Associates, during the decade ending last September, VCs earned a 2.6% interest rate for their investors. You could have made more money rolling a wheelbarrow of Marks through Berlin in the Weimar Republic.
Even Google hasn’t got it right. Google Ventures was supposed to disrupt venture capitalism when it launched in 2009 but when was the last time you heard anything about that particular fund.
I could go on about investment bankers and how much they charge startups when they have an opportunity to sell, but I have a little business that is attempting to disrupt that model anyway.
But maybe it’s time to set up a fund myself. I meet amazing companies all the time be it through my business or through the writing that I do. I’m a decent enough scout for young talent and I’m sure I could give a better return than 2.6%.
So if you suddenly see a fund and a new venture capitalist kid on the block hopefully publishing and sharing interesting stuff on Twitter, take care to click follow, because it could be me, yes, it could be me.
Now, wouldn’t that be a turn-up for ye olde books.