Rethinking the Founder-VC Dynamic
Founder-VCs are not the solution to Europe's startup funding performance. Instead, the industry should look towards better standards and more institutional capital.
A deep dive reveals that while the European venture capital scene champions the idea of founder-turned-VCs for their operational insights and risk appetite, actual data suggests a different story.
Despite the allure of eased due diligence and potentially faster fundraising, founder-VCs don't necessarily outperform their professional counterparts in investment success.
With a critical examination of the 'halo effect' and the 'operator handicap,' the article underscores the need for Europe's VC ecosystem to prioritize attracting more institutional capital and enhancing transparency for a more robust and accountable future.
Read more: https://news.crunchbase.com/venture/europe-founder-vcs-gray-equidam/